On The Agreement Between The United States And The Czechoslovak Federal Republic On The Reciprocal Protection And Promotion Of Investment

Original Language Title: o Dohodě mezi USA a ČSFR o vzájemné ochraně a podpoře investic

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=41043&nr=187~2F1993~20Sb.&ft=txt

187/1993 Coll.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Change: 102/2004 Coll.



Ministry of Foreign Affairs declares that on 22 November. October 1991 was in

Washington signed the agreement between the United States and the Czech and

Slovak Federal Republic on mutual promotion and protection of

investments.



With the agreement have expressed their approval of the Federal Assembly of the Czech and Slovak

The Federal Republic and the Prime Minister of the Czech and Slovak Federal

States on behalf of the President of the Czech and Slovak Federal

The Republic has ratified it. The instruments of ratification were exchanged in Prague on

November 19, 1992.



Agreement entered into force, pursuant to article XIV, paragraph 1. -1 day ago

December 19, 1992.



The Czech version of the agreement shall be published at the same time.



The AGREEMENT



between the United States and the Czech and Slovak Federal

Republic on mutual promotion and protection of investments



United States and the Czech and Slovak Federal Republic (hereinafter referred to

the Contracting Parties) desiring to promote greater mutual economic

cooperation with regard to investments of nationals or companies of the

one Contracting Party in the territory of the other party; and



recognising that agreement on the treatment to be given to these

investment, encourage the flow of private capital and the economic development

the Contracting Parties,



agreeing that fair and equitable treatment to investments is

desirable for the maintenance of a stable system for investment and for

the most effective use of economic resources, and



Reaffirming its interest in developing economic cooperation in accordance with the

the principles and the provisions of the final act, signed in Helsinki, Finland 1.

August 1975 and with other documents of the Conference on security and cooperation

in Europe,



convinced that private business on the free and freely accessible

markets provides the best options for raising living standards and values

of life of the inhabitants of the Contracting Parties, to improve the well-being of workers and

support of general respect for the internationally recognized workers ' rights,



determined to conclude agreements on mutual promotion and protection of investment,



have agreed upon the following:



Article. (I)



1. for the purposes of this agreement



and) "investment" means any type of investment in the territory of one of the Contracting

the party that is owned or directly or indirectly controlled by

nationals or companies of the other party, such as the

shares, debt, contract on services and investment agreement, and includes:



I) tangible and intangible property, including rights such as mortgages,

collateral and guarantees;



(ii)) the company or the shares or other shares of the company or the shares of the

its assets;



III) claims or claims that have

value and associated with an investment;



IV) intellectual property, which includes among other things the law relating

to



– literary and artistic works, including sound recordings,



-inventions in all fields of human endeavor,



-industrial designs,



-arrangement of parts of semiconductor integrated circuits,



-trade secrets and confidential business information, and



-trade and service marks, and product names,



in) any right arising from law or the contract, and any

permissions and permits in accordance with the law, including concessions on

Search, cultivation, extraction or exploitation of natural resources;



(b)), the "company parties" means any corporation, company,

associations, State or other undertaking or another organization, the legal

terms established in accordance with the legislation of the Contracting Party or its

political subdivisions, whether or not established for the purpose of

financial income and is in private ownership or ownership of the Government;



(c)) "national" of a contracting party means the natural person who is

a national of a Contracting Party in accordance with its relevant

the law;



(d)) "yield" means the amount of the resulting or connected with investment and

includes earnings, dividend, interest, capital increment, license fees and

management fees, technical assistance and other fees; or material

revenue;



e) "accompanying activities" include the Organization, control, operation, maintenance

and there are companies, affiliates, agenciemi, offices,

factories and other facilities for business operations; the conclusion, performance and

the implementation of contracts; the acquisition, use, protection and disposal of assets

of any kind, including intellectual property rights and industrial

rights; borrowing of funds, purchase and sale of shares, the issue of

and other securities and the purchase of foreign currencies for imports;



f) "non-discriminatory treatment" means treatment that is

at least as favourable as the treatment is the best of the national or

most favoured nation treatment;



g) "national treatment" means treatment that is at least as

the most favourable treatment as favourable, the imputed party

companies or nationals of that Contracting Party in similar

cases; and



h) treatment on the "MFN" refers to treatment

is at least as favourable as that which is granted to the Contracting

party companies or nationals of third countries in

similar cases.



2. each Contracting Party reserves to deny any

the company benefits from this agreement, if such a company

control the citizens of a third country or, in the event that the company second

the Contracting Parties shall not exercise any larger business on the

the territory of the other Contracting Party or is checked by the citizens of a third country with

which deny the Contracting Party does not maintain normal economic relations.



3. Any change in the form in which assets are invested or

reinvestována, does not affect their character investment.



Article II



1. Each Contracting Party shall permit and treat investment and will be

related activities on a non-discriminatory basis, with each

the Contracting Party has the right to make or maintain exceptions in sectors or

the matters referred to in the appendix to this agreement.



Both parties agree that they shall report to the other party

in advance or on the day on which this agreement enters into force, all such

laws and regulations, which are aware of that concern the sector or

the matters referred to in the Appendix.



Furthermore, each Contracting Party agrees that the reports of the other Contracting

side of any future exceptions relating to sectors or matters

listed in the Appendix, and also agrees that such exceptions be limited to

minimum.



Any future exception taken by one party in a given

sector or matter, shall not apply to investment existing in

When such an exception is in force.



Treatment applied by any of the exceptions must not be less

favourable than that applied in similar cases in the

investment and related activities of nationals or

companies of any third country, unless otherwise provided in the Appendix.



2.



and will always be) investment to ensure fair and equal treatment and

will enjoy full protection and security, and in any case it will not be

accorded worse treatment than it is in accordance with international law.



(b)), no Contracting Party will not be any arbitrary and discriminatory

measures to restrict the management, operation, maintenance, use, exploitation,

dissemination or disposition with an investment option.



For the purposes of dispute settlement under articles VI and VII of this agreement of measures may

be arbitrary and discriminatory, even if the litigant had or used the

the possibility of a review of such a measure, the courts or the administrative courts

of the respective parties.



c) each Contracting Party shall observe any commitment, adopted by the

in relation to the investment.



3. in accordance with the laws relating to the entry and residence of aliens, the

the nationals of each Contracting Party allowed to enter and dwell

on the territory of the other Contracting Party for the purpose of the establishment, development, management or

consultation on the operation of an investment to which the person or the company's first

the Contracting Parties, which employs them, or intend to insert

a substantial part of the capital or other resources.



4. companies legally established in accordance with the law of a Contracting

the parties and that are investment, will be permitted to employ senior management

personnel of their choice, regardless of their nationality.



5. No Contracting Party shall, as a condition for the establishment, expansion and

maintaining investment store performance of the obligations that require or enforce

the export of manufactured goods, or that prescribes that goods or services

must be purchased locally, or imposing other similar requirements.



6. each Contracting Party shall ensure effective means for the assertion of

claims and rights relating to investments and their approval and to

agreement on investment.



7. each Contracting Party shall allow access to all laws, regulations,

administrative practice and procedures and judicial pronouncements relating to or

affecting investment.




8. The treatment of investment and accompanying activities, imputed

United States of America pursuant to this article, it will be in all States

territories and possessions of the United States or by

přiznávaným companies in this respect legally designated in accordance with

the legislation of other States, territories and possessions of the United States

of America.



9. Non-discriminatory treatment and MFN clause pursuant to this

the agreement shall not apply to advantages granted to one another

Contracting Party to nationals or companies of any

third country on the basis of



and obligations of a Contracting Party) relating to investment and resulting from the

full membership in the free trade area or a Customs Union, or



(b) the obligations of a Contracting Party) in any multilateral international agreement in

under the General Agreement on tariffs and trade, which will be closed then

After this agreement.



10. the Contracting Parties acknowledge and agree that "the accompanying

activities "include, without limitation, the following types of activities:



and the award of concessions or permissions) on the basis of the authorisation;



(b)), to obtain the permission option, the registration, permits and other approvals

offices (which must in any event be issued rapidly);



(c)) access to financial institutions and credit markets;



(d) access to your own funds) imposed on financial institutions;



e) imports and the installation of equipment necessary for regular management

business matters, including but not limited to Office

equipment and cars and export equipment and cars imported in this way;



(f) the dissemination of business information);



(g)) of the survey of the markets;



h) the appointment of sales representatives, including providers,

consultants, distributors and their participation in trade fairs and

promotions;



I) marketing of goods and services, including its implementation through

the internal distribution and marketing systems, as well as advertising and direct

contacts with individual persons and companies;



j) access to municipal power, public services and business

premises, leaving behind the non-discriminatory prices, if they are determined and

controlled by the Government;



k) access to raw materials, production inputs and services of all kinds for

non-discriminatory prices, if they are determined and controlled by the Government.



Article. (III)



1. will not be nationalized, expropriated or Investments or subjected to direct

or indirect measures equivalent to expropriation or nationalisation

("expropriation"), except in the public interest; on the basis of the legal

the procedure; non-discriminatory manner; against the immediate, adequate and

effective compensation; and in accordance with the General principles of treatment provided

in article II, paragraph 1. 2 of this agreement.



Compensation must correspond to the fair market value of the expropriated investments

immediately before the expropriation or before became famous; must be

paid without delay including interest from the date of expropriation in accordance with reasonable

market interest rates; will be fully feasible and freely transferable in

the prevailing market exchange rate on the date of expropriation.



2. A national or company of each of the Contracting Parties,

declare that all or part of his investment was vyvlastněna, has the right to

to prompt review by the competent judicial or administrative

the authorities of the other party, whether such expropriation has occurred, and if

Yes, whether such dispossession and the appropriate refund corresponds to the provisions

This agreement, which reflects the principles of international law.



Article IV



Nationals and companies of both Contracting Parties, the

investments in the territory of the other Contracting Party suffer damages as a result of the war

or other armed conflict, revolution, State of emergency,

insurrection, civil disturbance or other similar events, it will

the other Contracting Party granted non-discriminatory treatment as regards

any action taken in connection with such damage.



Article. In



1. Each Party shall permit all transfers relating to the

invest freely and without delay into and out of its territory. Such transfers

include:



and) income;



(b) refunds provided for in article III) this agreement;



(c) payments arising from) investment disputes;



d) payments made in accordance with the contract, including amortization of the principal and

the accrued interest payments under the credit agreement;



e) proceeds from the sale or liquidation of all or part of the investment;



(f) additional capital injections) to the maintenance or expansion of investment.



2. With the exception of the provisions of article III, paragraph 1. 1 this Agreement shall transfer must

carried out in freely convertible currency prevailing market rate of exchange for

spot operation applicable on the day of transfer to the currency in which the transfer

performs.



3. Notwithstanding the provisions of paragraphs 1 and 2, the two parties may have

laws and regulations



and requiring the reporting of money transfers) and



(b)), imposing income tax in such a form, such as income tax at

dividends and other transfers.



In addition, each Contracting Party may protect the rights of creditors, or

ensure the execution of the judgments of the courts, and that in a fair and

non-discriminatory application of its laws in good faith.



Čl.VI



1. an investment dispute is for the purposes of this article, defined as a dispute

relating to the



and) interpretation or application of the agreement between the investment one of the Contracting

a party and a national or company of the other party;



(b)) or the use of any interpretation of the investment permission

issued by the Office of the Contracting Party for foreign investment such

a national or company;



(c) the alleged infringement of any rights) relating to the investment

that has been granted or arises out of this agreement.



2. in the case of an investment dispute between a Contracting Party and the State

a national or company of the other party, the parties will be in

the dispute first try to solve the dispute through consultations and negotiations, and can be

use non-binding talks with a third party.



Subject to the provisions of paragraph 3 of this article, the dispute, if it cannot be

to resolve through consultations and negotiations, submitted for settlement by an appropriate

the procedure for the settlement of disputes, in which the parties agree in advance.



Any property settlement in the dispute, including those relating to the

the expropriation as provided for in the investment agreement will be binding upon and enforceable

in accordance with the terms of the investment agreement, the relevant provisions of

local laws and relevant international agreements on the exercise

sayings of courts of arbitration.



3. At any time after the expiry of six months from the date on which the dispute

, national or company concerned may choose whether

with the consent in writing of the submission of the dispute to a conciliation settlement

binding arbitration or to the International Centre for the resolution of

investment disputes ("the Centre"), or by Additional options

The Centre or by the Arbitration Rules of the United Nations Commission for international

business law ("UNCITRAL") or in accordance with the arbitration rules of any

arbitral institutions mutually agreed by the parties in the dispute.



and) as soon as the national or company gave its consent,

each party to the dispute may initiate such proceedings, provided that the



the dispute has been submitted I) a national or company under the

appropriate, previously agreed upon a procedure for the resolution of the dispute; and



(ii)) the national or company did not submit a dispute to the Court,

Administrative Court or authority of competent jurisdiction of the Contracting Parties in

the dispute.



If the parties in dispute fail to agree on whether it is better to use

an amicable or binding arbitration is a critical opinion of the

of a national or company.



(b)), the two parties hereby give their consent to the presentation of the investment

dispute an amicable or binding arbitration:



I) the Centre, in the case of the Czech and Slovak Federal Republic

become a party to the Conventions about how to resolve investment disputes between States and

nationals of other States, done at Washington on 18. March

1965 ("the Convention") and of the statutes and the rules of the Centre, and additional options

The Centre, and



II) Court of arbitration established under the UNCITRAL rules, such

the rules may be modified by mutual agreement of the parties to the dispute

(place in each nomination will be the Secretary General of the Centre).



c) Reconciliation or arbitration disputes referred to in subparagraph (a). (b))) must be

done using the provisions of the Convention and the statutes and rules of the Centre,

or additional options, depending on the circumstances.



d) Place any arbitration conducted pursuant to this article,

must be a State that is a party to the United Nations Convention on the recognition and enforcement of

foreign judgments, signed in New York in 1958.



e), each Contracting Party shall guarantee that the enforced regulation without delay

any judgment of the arbitration proceedings, carried out in accordance with the

This article VI. Furthermore, each Contracting Party shall allow on its territory

the execution of such an arbitration statement.



4. the Contracting Party shall not apply any kind of hearing

investment dispute as a defence, counterclaim or right to compensation


otherwise, that the national or company has already received or

receives from the insurance or guarantee contract, indemnification or other

compensation for all or part of its alleged damages.



5. in the case of arbitration, for the purposes of this article, each

the company legally established under the applicable law of a

Contracting Party or its political subdivisions, which, however,

immediately before the occurrence of the fact or facts

of the dispute was the investment of nationals or

by the other Contracting Party, shall be deemed to State

a national or company of the other party (in accordance with the

Article 25 (2) (b) of the Convention).



Article. (VII)



1. Any dispute between the Contracting Parties concerning the interpretation or

application of this agreement, which will not be resolved through consultations or other

by diplomatic channels, will be presented at the request of one of the Contracting

the parties to an arbitral tribunal for binding decision in accordance with the relevant

rules of international law. Unless the parties agree otherwise,

they will pay the arbitration rules of the United Nations Commission on international law

Trade (UNCITRAL), except as modified by the Contracting Parties

or arbitrators.



2. Within two months of receipt of the request, each Party shall appoint a

one arbitrator. These two arbitrators shall select the third as President

an arbitrator, a national of a third State. The UNCITRAL rules for

the appointment of the members of the three-Member arbitration panel shall be used mutatis

mutandis, to the appointment of the judge the jury, with the exception that the nomination

the place referred to in these rules, the General Secretary of the Standing

of the arbitrator.



3. Unless otherwise agreed, all submissions must be made and

all seating is made within six months from the date of the election of the third

the arbitrator and the Court will make its decision within two months from the date of the last

Administration or from the date of their hearing, according to which it was

later.



4.



and) each Contracting Party shall bear the costs of its representation in the arbitral

control.



(b) the Expenses and other costs) of the President, the other arbitrators, and other costs

the proceedings shall be borne equally by both parties. However, the Court may, pursuant to

its discretion, determine that the greater part of these costs be paid by one of the

of the Contracting Parties.



Article. (VIII)



The provisions of article VI and VII shall not apply to disputes arising from the



and programs) in connection with the export and Import Bank of the United States for the

export credits, guarantees and insurance, or



(b)) in connection with other official credit, guarantee or

insurance arrangements, in which the parties have agreed that disputes

will be dealt with by other means.



Article. (IX)



This agreement will not reduce the effectiveness of



and) laws and regulations, administrative practices or procedures

administrative or judicial decision by both parties;



b) international legal obligations; or



(c)) the commitments made by the two parties, including commitments

contained in an investment contract or investment permissions that

justify investments and associated activities to more favourable treatment

than in similar situations admits this agreement.



Article. X



1. this Agreement shall not preclude any Contracting Party did not use the

the measures necessary for the maintenance of public order, fulfil their obligations

to maintain or restore international peace and security, or for

the protection of its essential security interests.



2. this Agreement shall not preclude any Contracting Party did not provide for

specific rules concerning the setting up of investment, including investments

carried out in or in connection with the State enterprises

passing through privatization, but this rule shall not limit the nature of the

any rights referred to in this agreement.



Article. XI



1. each Contracting Party undertakes, in relation to its tax

policy, to provide the investments of nationals of and

the company of the other Contracting Party fair and equitable treatment.



2. However, the provisions of this agreement, and in particular articles VI and VII, will be

applied in matters of taxation only to the following:



and) expropriation, according to article III;



(b)) the transfers, according to article V; or



(c) respect for and the implementation of conditions) an investment contract or investment

permission, as stated in article VI, paragraph 1, letter a) or (b)), and

to the extent in which are not the subject of the dispute settlement provisions of the

The agreement on the avoidance of double taxation between the two Contracting Parties, or

have been raised in accordance with such provisions on dispute resolution and are not

resolved within a reasonable time.



Article. (XII)



The parties agree that, at the request of either party, shall proceed immediately to

consultations in order to resolve any dispute related to the agreement or

they will discuss any matter concerning the interpretation or application of

The agreement. The parties also agree that proceeds immediately for consultations

whenever one of the parties believes that it is necessary to take steps to

ensure compatibility between the agreement and the Treaty establishing the European

the community.



Article. XIII



This agreement will be valid in all the political podrozděleních of the

party.



Article. XIV



1. This agreement shall enter into force thirty days after the date of the exchange of

instruments of ratification. Will remain in force for a period of 10 years and will be

continue to apply, unless terminated in accordance with paragraph 2 of this article. Will

relate to investments existing at the time of its entry into force,

as well as investments made or acquired since that time.



2. each Contracting Party may terminate this agreement at the end of the initial

a ten-year validity period or at any time thereafter, by sending a

one year's written notice to the other party.



3. with regard to investments made or acquired before the end

the validity of this agreement and for which this agreement is also subject to,

the provisions of all the other articles of this Agreement shall continue in effect

After a period of ten years from the date of its termination.



4. in addition, the Protocol and the additional letters are an integral part of this

the agreement.



In witness whereof, the duly empowered to do so, have signed this agreement.



Given in duplicate in Washington on 22 November. October 1991 in c

English and Czech, both texts being equally authentic.



For the United States:



Julius l. Katz v.r.



For the Czech and Slovak Federal Republic:



Ing. Václav Klaus, CSc. v.r.



APPENDIX



1. in accordance with article II, paragraph 1, the United States reserves the right to

to make or keep the limited exceptions to the national treatment in the sectors

or matters listed below:



-air transport



-Sea and coastal water transport



-banking



-insurance



-Government subsidies



-Government programs, insurance and loans



-the production of energy and electricity



-Customs brokerage



-ownership real estate



-ownership and control of radio stations or public carriers

radio and television stations



-Satellite Communication stock ownership Corporation



-equipment for public telephone and telegraph services



-equipment for undersea cable service



-land use and natural resources



-mining on public land



-the primary sales representative for securities of the Government of the United States



-fisheries



-subsidies.



2. in accordance with article II, paragraph 1, of the United States reserve the right to

to make or keep a limited exception from the treatment referred to in clause

the highest advantages in the sectors or matters listed below:



-ownership real estate



-mining on public land



-the primary sales representative for securities of the Government of the United States



-services connected with sailing



-fishing.



3. in accordance with article II, paragraph 1, the Czech and Slovak Federal

Republic reserves the right to take or preserve limited exceptions to the

national treatment in the sectors or matters listed below:



-ownership real estate



-the insurance industry.



4. in accordance with article II, paragraph 1, and how it will be necessary to meet the

commitments pursuant to the measures adopted by the European Union, the Czech Republic's

reserves the right to assert or maintain exceptions to national treatment

sectors or matters which are listed below:



Agriculture



Audiovision



Securities, investment services and other financial services



Fishing



Hydrocarbons



Subsidies



Transport (air transport)



Transport (inland water transport)



Transport (maritime).



5. in accordance with article II, paragraph 1, and how it will be necessary to meet the

commitments pursuant to the measures adopted by the European Union, the Czech Republic's

reserves the right to assert or maintain exceptions to the highest

advantages in the sectors or matters which are listed below:



Agriculture



Audiovision



Hydrocarbons.



6. No exception applied by the Czech Republic pursuant to paragraphs 4 and 5 above

(i.e., any law or regulation adopted by the Czech Republic, or

measures the European Union directly applicable in the Czech Republic)

does not apply after the time period set out in subparagraph (a) below), the

investment of citizens or companies of the United States that exist in the

the sector concerned on the date of effectiveness of this legislation, or to


the date when the European Commission, in its official journal publishes its draft

take the appropriate action, any date is later.



(a) the time period referred to in this paragraph is ten years from the date of

shall be effective under applicable law or regulation adopted by the Czech

Republic or the European Union directly applicable measures in the Czech

Republic, or twenty years from the date of entry into force of the agreement, any

date is later.



(b) in any case, the exemption cannot be applied in accordance with paragraphs

4 or 5 above, applied to an existing investment, as defined in the

This paragraph, to the extent that it would require a waiver, the total

or partial, of the existing investment.



This Appendix forms an integral part of the agreement.



Protocol



1. the Contracting Parties agree that nothing in this Agreement shall be construed

in order to apply to the bodies which are accredited as part of the

the diplomatic mission or consular post of a Contracting Party.



2. The term "political subdivision" referred to in article I, paragraph 1

subparagraph (b)), article VI, paragraph 5 and article XIII of the Contracting Parties

means:



-for the Czech and Slovak Federal Republic, the Czech

Republic and the Slovak Republic;



-as regards the United States, the States of the United States of America.



3. The parties acknowledge that the terms of article II, paragraph 9 (a)

true, if the economic relations between the Contracting Party and a third country

includes a free trade area or a Customs Union.



The Protocol will be an integral part of this agreement.



Deputy Trade Envoy of the United States Office of the President

Washington, D.C. 20506



22 October 1991



Dear Mr. Deputy Prime Minister,



in the context of today's signing of the agreement between the United States of America

and the Czech and Slovak Federative Republic of Brazil ("CSFR") relating to the

mutual promotion and protection of investment ("the agreement"), I have the honour to confirm

the following understanding of our Governments relating to article II, paragraph

1. agreements concerning investment:



1. in applying the provisions of article II, paragraph 1, concerning the

investment of CZECHOSLOVAKIA may request the consent of (a) the investment of the citizens or

companies of the United States to the companies in which majority stake

belongs to Czechoslovakia, and (b) on investment companies and citizens of the United

States, through which these citizens or companies to ensure

either directly or indirectly, equity share of the CSFR on these companies.



2. Any required consents referred to in paragraph 1 will not be denied for

the purpose of, or in order to limit competition or discourage or prevent

investment companies and citizens of the United States in certain

sectors (except in the cases referred to in the annex). In addition, the CSFR shall provide no

less than the best benefits to citizens and companies of the United States when the

deciding whether to give or refuse such consent.



3. within two years from the date on which this agreement takes effect, the parties will advise on

a narrowing of the scope of the investment covered by paragraph 1. and then on the

the abandonment of the requirement of consent. CSFR immediately take steps to

ratification of this agreement after the Parliament approves a new business

the code that is in accordance with the provisions of this letter concerning

the liberalization of government procedures in granting consent.



I have the honour to confirm that this agreement will be deemed to form an integral

part of the agreement.



In awe of



Julius l. Katz v.r.



His Excellency



Václav Klaus



Deputy Prime Minister and Minister of finance



The Czech and Slovak Federal Republic



Deputy Prime Minister and Finance Minister of CZECHOSLOVAKIA Václav Klaus



In Washington, d.c. on 22 November. October 1991



Madam Ambassador,



in the context of today's signing of the agreement between the Czech and Slovak

Federative Republic of Brazil (CZECHOSLOVAKIA) and the United States of America on the

mutual investment promotion and protection (hereinafter the agreement), I have the honour to confirm,

with regard to article II, paragraph 1, of the agreement concerning the establishment of

investments, following agreement between our Governments.



1. In applying the provisions of article II, paragraph 1. 1 concerning the establishment of

investment may require only the CSFR authorisation procedures for:



(A) investments by nationals and companies of the United States

are inserted into or are made with companies in which

most of the assets or ownership interests own Czechoslovakia, and



(B) investments by nationals and companies of the United States,

through which these members or the company goes directly

or indirectly, interests in CZECHOSLOVAKIA in companies.



2. The necessary permits will not be denied of such a reason, or with such a

the goal, which would restrict competition or discourage or inhibit investment

nationals and companies of the United States in certain sectors

(with the exception of those that are listed in the annex). It will also be of Czechoslovakia

deciding on the granting or refusal of authorisation to provide a

nationals and companies of the United States treatment not worse than

most favoured nation treatment.



3. within two years from the entry into force of this agreement, the Contracting Parties shall

consultation with the intention of limiting the scope of the investment covered by paragraph 1

subject, and then remove the need for the authorisation procedure.



The CSFR shall initiate the ratification of this agreement, immediately after the adoption of the new

the commercial code in the Federal Assembly, which will be in accordance with the

with this letter as regards the liberalisation of the approval process by the Government.



I have the honour to propose that this agreement was considered an integral

part of this agreement. I shall be grateful, if you confirm that this

the arrangement agrees to your Government.



With respect



Václav Klaus, v.r.



Dear Ms.



Carla A. Hills



Ambassador and trade representative



United States of America



Deputy Trade Envoy of the United States Office of the President

Washington, D.C. 20506



22 October 1991



Dear Mr. Deputy Prime Minister,



in the context of today's signing of the agreement between the United States of America

and the Czech and Slovak Federative Republic of Brazil ("CSFR") relating to the

mutual promotion and protection of investment ("the agreement"), I have the honour to confirm

the following understanding of our Governments related to the annex to the agreement:



As regards paragraphs 1 and 2 of the annex to the agreement, the United States confirmed,

that the scope of the exceptions to the national or the highest benefits in each sector

or matter there referred to is included in the federal or State

laws and regulations of the United States. All exceptions to the national or

the highest benefits are limited to those that these laws and regulations

they are considering, whether now or in the future, shall apply. Any other exceptions

will be limited to those sectors or matters listed in the annex, and

will not apply to investments already made at the time the exception

it enters into force.



With regard to paragraph 2 of the annex, the United States confirmed that the exceptions to the

the highest benefits in the following sectors are the result of application

reciprocal of the criteria in the applicable laws and regulations:



mining in the public area; the primary commercial representation in Government

securities laws of the United States; and maritime-related services

voyages.



I have the honour to confirm that this agreement will be deemed to form an integral

part of this agreement.



In awe of



Julius l. Katz v.r.



Deputy Prime Minister and Finance Minister of CZECHOSLOVAKIA Václav Klaus



In Washington, d.c. on 22 November. October 1991



Madam Ambassador, I have the honour to acknowledge receipt of your letter of

on 22 November. October 1991 reads as follows:



"Dear Sir,



in the context of today's signing of the agreement between the Czech and Slovak

Federative Republic of Brazil (CZECHOSLOVAKIA) and the United States of America on the

mutual investment promotion and protection (hereinafter the agreement), I have the honour to confirm,

as regards the amendment to the agreement, the following arrangements between our two Governments.



In accordance with paragraphs 1 and 2 of the Appendix to the agreement the United States confirm that

the scope of exceptions to national treatment or from the treatment referred to in clause

the highest benefits in each of the above sectors or matters is

based on the federal laws or regulations, or the laws or

provisions of the individual u.s. States. Any exceptions from the national

treatment or from the MFN treatment are

limited to cases provided for in the laws and regulations that

can be effective in the present or in the future. Any future

exceptions will be limited to those sectors and issues that are listed in the

Appendix a shall not apply to investments existing at the time when these

exceptions shall be effective.



In accordance with paragraph 2 of the Appendix, the United States confirmed that the

exemptions from MFN treatment in these

sectors are based on the principle of reciprocity in the applicable law and

legislation:



-mining on public land



-the primary sales representative for securities of the Government of the United States



-services connected with sailing.



I have the honour to propose that this agreement was considered an integral

part of this agreement. I shall be grateful, if you confirm that this

understanding your Government agrees. ".



I have the honour to confirm that the Government of the Czech and Slovak Federal Republic


agrees that this agreement was considered an integral part of the agreement.



With respect



Václav Klaus, v.r.



Dear Ms.



Carla A. Hills



Ambassador and trade representative



United States of America



Deputy Trade Envoy of the United States Office of the President

Washington, D.C. 20506



22 October 1991



Dear Mr. Deputy Prime Minister,



during the negotiation of the agreement between the Czech and Slovak Federative Republic of Brazil

("CSFR") and the United States of America regarding mutual support and

the protection of investments ("the agreement"), the delegation took note of the economic

transformation in CZECHOSLOVAKIA. Due to these rapid changes we discussed

the urgency of security timely information about these changes, and other

assistance for the citizens and companies of the United States, in order to fully

take advantage of the Agreement, with regard to their investments and related

activity.



In this connection, the Government intends to achieve this goal the establishment of the CZECHOSLOVAK FEDERATIVE REPUBLIC

authority, which should:



-to provide the latest information on the applicable regulations relating to

national and local business and investment, including authorisation and

registration procedures, taxes, industrial relations, the level of

accounting, and the possibility of loans;



-provide the most recent and instantly accessible information concerning the

the proposed changes in the laws and regulations in relation to investors;



-co-ordinating with the authorities of the Government of CZECHOSLOVAKIA to help investment at national,

regional and local level;



-helped investors who have encountered difficulties in registering,

authorisation, access to public services, regulatory and other

matters which relate to the implementation and operation of investment;



-collected and expanded information on investment projects and

the sources of its funding.



I have the honour to confirm that this agreement will be deemed to form an integral

part of this agreement.



In awe of



Julius l. Katz v.r.



His Excellency



Václav Klaus,



Deputy Prime Minister and Minister of finance



The Czech and Slovak Federal Republic



Deputy Prime Minister and Finance Minister of CZECHOSLOVAKIA Václav Klaus



In Washington, d.c. on 22 November. October 1991



Madam Ambassador,



during the negotiations on the agreement between the Czech and Slovak Federal

Republic and the United States of America on mutual promotion and protection of

investment (Agreement) delegation took note of the economic changes in the Czech and

Slovak Federal Republic (CSFR). Due to these rapid

the changes we discussed the effectiveness, in order to ensure that the State

members and companies of the United States receives timely information about

These changes and other assistance so that they can make the full profit from the agreement,

When it comes to their investments and associated activities.



In this context, the Government of the CZECHOSLOVAK FEDERATIVE REPUBLIC intends to meet this goal by creating a

the Organization, which would:



-provide timely information about the applicable national and local

trade and investment regulations, including authorisation and

registration management, taxation, business regulation, accounting

standards and access to credit;



-provide timely and accessible information on the proposed

changes in the regulations and legislation that relate to investors;



-to coordinate the promotion of investments with the Czechoslovak Government

at the national, regional and local level;



-helped investors who have difficulty with registration, permits,

access to public services, regulatory and other matters that are

relate to the establishment and operation of the investment;



-collect and propagate information about investment projects and

the sources of their financing.



I have the honour to propose that this agreement was considered an integral

part of this agreement.



I will be grateful if you would confirm that your Government is in favour of this

the arrangement.



With respect



Václav Klaus, v.r.



Dear Ms.



Carla A. Hills



Ambassador and trade representative



United States of America.