73/1999 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 23 July. September 1997 was in
Jerusalem signed the agreement between the Government of the Czech Republic and the Government of the State of
Israel on mutual promotion and protection of investments.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified the agreement.
Agreement entered into force, pursuant to article 12 paragraph 2. 1 day 16.
March 1999.
The Czech version of the agreement shall be published at the same time. In the English version, which is
for its interpretation of the applicable, can be consulted at the Ministry of foreign
Affairs and the Ministry of finance.
The AGREEMENT
between the Government of the United Kingdom and the Government of the State of Israel on mutual support and
protection of investments
The Government of the United Kingdom and the Government of the State of Israel (hereinafter referred to as "the Contracting Parties"),
Desiring to intensify economic cooperation to the mutual
the benefit of both countries,
intending to create favourable conditions for greater investment
investors of one Contracting Party in the territory of the other Contracting Party and
Recognizing that the mutual promotion and protection of investments on the basis of this
the agreement will lead to encouraging entrepreneurship and increasing prosperity
in both States, agree to the following:
Article 1
The definition of the
For the purposes of this agreement:
1. the term "investment" means any assets invested in
with regard to the activities of an investor of one Contracting Party
on the territory of the other Contracting Parties in accordance with the laws of the other Contracting
Parties and shall, in particular, but not limited to:
a) movable and immovable property, as well as any other rights in rem
relating to any type of asset, such as mortgages, pledges,
guarantees and similar rights;
(b)) the rights arising from the shares, bonds and other types of participation in the
societies;
(c) claims and claims) to any performance having an economic
the value associated with an investment;
(d)) intellectual property rights, including copyright, of the
trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill associated with the
the investment;
e) license by operation of law or from the contractual arrangements, including
licenses for exploration, cultivation, extraction or exploitation of natural resources.
2. Change of the form in which the values are invested or reinvested in
accordance with the legislation of the Contracting Party in whose territory the investment is
carried out, does not affect their character as investments within the meaning of
of this agreement.
3. The term "investor" means:
(i) as regards the Czech investors in the State of Israel:
a) natural persons who are citizens of the Czech Republic in accordance with its
laws and that are not at the same time citizens or persons permanently residing in the
The State of Israel in accordance with its laws; or
(b)) a legal person incorporated or constituted in accordance with Czech
laws and having its permanent Office in the territory of the Czech Republic;
(ii) as regards the Israeli investors in the Czech Republic:
and natural persons) are citizens of the State of Israel in accordance with its
laws and that at the same time they are not citizens of the Czech Republic in accordance with its
the laws; or
(b)) a legal person incorporated or established in accordance with Israeli
laws and having its registered office in the territory of the State of Israel.
4. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, dividends, profits, interest, additions to
capital, licensing or other fees.
5. the term "territory" means:
(i) in relation to the Czech Republic, the Czech Republic, where Czech
Africa carries the sovereignty, sovereign rights or
jurisdiction;
(ii) in relation to the State of Israel the territory Israel including the territorial
the sea, exclusive economic zones and the continental shelf, where the State
Israel shall exercise sovereignty, sovereign rights or jurisdiction in
accordance with international law.
Article 2
The promotion and protection of investments
1. Each Contracting Party shall in its territory promote and create
favourable conditions for investments by investors of the other party and, in
accordance with its powers under the law, such
investment feelings.
2. Investments made by investors of one Contracting Party would be
granted on the territory of the other party proper and fair treatment
and they will enjoy full protection and security in the territory. No
the Contracting Party shall in its territory in any way interfere with the unfair
or discriminatory measures the management, maintenance, use, use of
or disposal of investments of investors of the other party.
Article 3
National treatment and MFN clause
1. Neither Contracting Party shall in its territory investments and income
investors of the other Contracting Party treatment which is less favourable than
It provides investment and the proceeds of their own investors or
investment and the returns of investors of any third State.
2. No Contracting Party shall impose on its territory, investors of the other Contracting
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments and returns, treatment which is less favourable than
It provides to its own investors or to investors of any
of a third State.
3. The provisions of paragraphs 1 and 2 shall not be construed to commit to one
a Contracting Party to provide investors of the other party favor
arising out of any treatment, benefits or privileges resulting from:
and) any international agreement or arrangement relating wholly or
mainly taxation or any other domestic legislation relating to the
wholly or mainly to taxation; or
(b)) any existing or future customs, economic or monetary
the Union, of the agreement on free trade zone or any similar international
the agreement, which a Contracting Party is, or may become.
Article 4
Compensation for loss
1. Investors of one Contracting Party whose investments in the territory of the other
the Contracting Parties will suffer losses due to war or other armed
conflict, revolution, State of emergency, civil disturbance, or other
such similar events on the territory of the other Contracting Party, the
provided to the other party, in respect of compensation, compensation,
compensation or other settlement, a treatment no less favourable than that
that the second party shall provide to its own investors or
investors of any third State. The resulting payments shall be freely
transferable in freely convertible currency without delay.
2. Notwithstanding paragraph 1 of this article will be to investors of a Contracting
party in any of the situations referred to in that paragraph
suffer losses in the territory of the other Contracting Party of:
) and seize their assets, by the armed forces or authorities of the other Contracting
party; or
(b)) the destruction of their property by the armed forces or authorities of the other Contracting
the party, which was not due to combat action or has not been invoked
the necessity of the situation, compensated or the corresponding compensation.
The resulting payments shall be freely transferable in freely convertible currency without
the delay.
Article 5
The expropriation
1. investments of investors of either Contracting Party shall not be nationalized,
expropriated or subjected to a measure having the same effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
the Contracting Parties, with the exception of expropriation in the public interest relating to
national needs of that Contracting Party, carried out at the
non-discriminatory basis, the procedure that is in accordance with the applicable
law, and over the immediate, adequate and effective compensation. Such compensation
will be equal to the market value of the expropriated investment immediately before the
the expropriation or before the impending expropriation became generally
known, whichever occurs earlier, will include interest at date
payments, will be paid without delay, will be effectively realizable and freely
shall not be transferable in freely convertible currency.
2. Prejudice to the investors shall have the right, in accordance with the laws of the Contracting Parties
carrying out the expropriation, the immediate assessment of their case and
value of their investment by judicial or other independent authorities of this
the Contracting Parties shall, in accordance with the principles set out in this article.
Article 6
The transfer of investments and income
1. each Contracting Party, as regards investment, will guarantee investors the second
the Contracting Parties the unrestricted transfer of their investments and the proceeds in accordance with the
the following principles:
Transfers will be made) without delay in the convertible currency in which the
the capital was originally invested, or in any other convertible currency
agreed to by the investor and the Contracting Party, provided that the
the investor has fulfilled all its tax obligations and that the transfer is in accordance
with the foreign exchange regulations of the Contracting Party in whose territory the investment
carried out.
(b)) in the case that the foreign exchange regulations of one Contracting Party is changed,
the Contracting Party shall guarantee that such changes will adversely affect the
rights on the transfer of investment and revenue according to the legislation in force at the time of
the realisation of the investment. However, if these changes will provide investment
and yields more favourable conditions than those which applied at the time of implementation
investment, these more favourable conditions.
2. If not agreed otherwise, the investor, transfers shall be
carried out according to market exchange rate on the date of conversion.
Article 7
Settlement of investment disputes between a Contracting Party and an investor
1. any dispute which may arise between an investor of one Contracting
the parties and the other Contracting Party in connection with the investments made
on the territory of that other party, will be the subject of negotiations between the
the parties in dispute.
2. If any dispute between an investor of one Contracting Party and the second
a Contracting Party cannot be resolved within six months, it is
the investor shall be entitled to submit the dispute:
and) to the competent court of the Contracting Party in whose territory the investment
carried out; or
(b) the International Centre) settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, D.
(C) 18. March 1965; or
(c)) the arbitrator or to the International Court of arbitration set up by ad hoc
odsouhlasenému the parties in dispute. The Tribunal will be established according to the
the principles contained in article 8.
3. all arbitration awards are final and binding on the parties to the dispute.
4. all amounts received or payable as a result of the resolution of the dispute
will be freely transferable in freely convertible currency.
Article 8
Disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement should, if possible, be settled by negotiations and
to the consultation. If the parties so desire, the dispute may be referred to the
the bilateral Commission, composed of representatives of both Contracting Parties.
2. If the dispute between the parties cannot be resolved within the time limit
six (6) months of notification of the case, will, at the request of any Contracting
the parties submitted to the Court of arbitration.
3. such arbitral tribunal will be established for each individual case
in the following way: within two months of receipt of the request for
arbitration, each Contracting Party shall appoint one member of the Court. These
two members are selected, then the citizen of a third State, provided that the
the State maintains diplomatic relations with both parties, the
agreement of both parties appointed by the President. The Chairman will
appointed within the time limit of two months from the date of appointment of the remaining two members.
4. If, within the time limits referred to in paragraph 3 of this article have not been
the necessary appointment, any Contracting Party may,
in the absence of any other agreement, request the President of the international
the Chamber of Commerce in Paris to make any necessary appointments.
If the President is a citizen of either Contracting Party or is unable to do this
Act for any other reason, will be making the necessary nomination asked
Vice Chairman. If it is also Vice-Chair of the citizen of a Contracting Party
cannot perform this operation, or for any other reason, it will be on the implementation of
the necessary appointment asked senior member.
5. the arbitral tribunal adopts its decisions by majority vote. Such
the decision shall be binding on both Contracting Parties. Each Contracting Party shall
shall bear the costs of its own Member of the arbitral tribunal and to its participation in the
arbitration proceedings; the costs of the Chairman and other expenses will be reimbursed
the Contracting Parties in equal shares. The arbitral tribunal may, however, in its
the decision required that a larger proportion of the costs shall be borne by one of the two
the Contracting Parties, and this finding will be binding for both parties.
The arbitral tribunal shall determine its own rules of procedure rules.
Article 9
Assignment of rights
1. If a Contracting Party or its designated agency (hereinafter referred to as
"first party") shall make payment in accordance with the compensation with
regard to the investment in the territory of the other Contracting Party (hereinafter referred to as "the second
Contracting Party "), the other party shall recognize:
and the assignment of all rights) and by the first Contracting Party claims
side on the basis of the law or legal arrangements; and
(b)) that the first Contracting Party shall be entitled to exercise such rights and
to enforce such claims by virtue of subrogation to the same extent as
odškodňovaná party.
2. the first party shall be entitled in all circumstances to:
and the same treatment) with regard to the rights and obligations acquired from
the title of the assignment of rights; and
(b)) to any payments received pursuant to those rights and claims,
as well, as it was entitled to the treatment and receive payments odškodňovaná
party under this agreement with respect to the investment and the
related revenue.
Article 10
The use of other rules
If the provisions of law of either Contracting Party or obligations under
international law existing at present or in the future
between the contracting parties outside this agreement contain rules, whether a generic
or specific, entitling investments by investors of the other Contracting Parties to the
treatment more favourable than is provided for in this agreement, they will have
such rules, to the extent that they are more favourable, prevail over the
This agreement.
Article 11
The Applicability Of The Agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one Contracting Party in the territory of the other Contracting Party and also on the
existing investments in accordance with the laws of the Contracting Parties of the date
the entry into force of this agreement.
Article 12
Entry into force, duration and termination
1. each Contracting Party shall notify the other party of the completion of procedures
required for the entry into force of this agreement. This agreement shall enter
force on the date of the later notification.
2. This agreement shall remain in force for a period of ten years. It will then be the
force continue, until--12 months after the date on which one
the Contracting Party shall notify the other party in writing of the termination of the
The agreement. For investments made during the term of the agreement will remain its
provisions effective for a period of 10 years after the date of termination, without
injury to the future use of rules of general international law.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Given in duplicate at Jerusalem on 23 December 2005. September 1997, which corresponds to the
21. elul 5757, in Czech, Hebrew, and English, with all
the three texts being equally authentic. In case of differences in interpretation is
the decisive English text.
For the Government of for the Government of
United States: the State of Israel:
JUDr. Karel Kühnl in r. Benjamin Netanyahu in r.
Minister of industry and trade of the Prime Minister
XIII.
When the signature of the agreement between the Government of the United Kingdom and the Government of the State of Israel
mutual investment promotion and protection, the undersigned have agreed on the
the following provisions, which shall form an integral part of the said
Agreement:
and) the provisions of paragraphs 1 and 2 of article 3 will not be interpreted as
undertake to State Israel give investors the benefit of the Czech Republic
arising out of any treatment, benefits or privileges resulting from the
the provisions of article 6 contained in the agreements on the promotion and reciprocal protection
investment agreements between the Government of Israel, and between the Governments of the Polish
Republic, the Republic of Hungary and Romania in 1991.
(b)) in the event that the agreement with the Republic of Poland, the Republic of Hungary and
Romania will be appropriately modified so that this annex as a result of
These changes becomes unnecessary, the Government of the State of Israel shall notify the
the Government of the United States. Following such notification, the annex becomes invalid.
Given in duplicate at Jerusalem on 23 December 2005. September 1997, which corresponds to the
21. elul 5757, in Czech, Hebrew, and English, with all
the three texts being equally authentic. In case of differences in interpretation is
the decisive English text.
For the Government of for the Government of
United States: the State of Israel:
JUDr. Karel Kühnl in r. Benjamin Netanyahu in r.
Minister of industry and trade of the Prime Minister
