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.