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On The Agreement Between Czechoslovakia And The Finnish Republic On The Promotion And Protection Of Investments

Original Language Title: o Dohodě mezi ČSFR a Finskou rep. o podpoře a ochraně investic

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478/1991 Coll.



The COMMUNICATION FROM the



the Federal Ministry of Foreign Affairs



The Federal Ministry of Foreign Affairs says that the January 6. November

1990 was in the Prague agreement signed between the Government of the Czech and Slovak

The Federal Republic and the Government of the Republic of Finland on the 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 President of the Czech and Slovak Federal

The Republic has ratified it.



Agreement entered into force, pursuant to article 11 (1) 1 day 23.

October 1991.



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



The AGREEMENT



between the Government of the Czech and Slovak Federal Republic and the Government of Finland

the Republic on the promotion and protection of investments



Government of the Czech and Slovak Federal Republic and the Government of the Republic of Finland



Desiring to develop economic cooperation to the mutual benefit of

the two countries,



Intending to create favourable conditions for investments by investors of both

of the parties on the territory of the other Contracting Party and



Recognizing the need to protect investments of the investors of both Contracting Parties, and

support the movement of capital and a private business initiative

taking into account the economic prosperity of both Contracting Parties,



They agreed on the following:



Article 1



The definition of the



(1) for the purposes of this agreement:



and) "investment" means any kind of assets associated with the economic

activities, and in particular:



(i) movable and immovable property and any other property rights such as

mortgages, guarantees or collateral;



(ii) shares, stock, debentures of companies or participation in the assets of

such companies;



(iii) the right or claim to the money, or the right to any transaction which

has economic value;



(iv) the copyrights, industrial rights (such as patents, trade

trademarks, industrial designs), technological procedures, know-how, trade

names and goodwill;



(v) trade concessions granted under the law or on the basis of the Treaty

including permission to search, refining, extraction or use of

natural resources;



(b)) the notion of "proceeds" means the sums resulting from investment and includes

in particular, profit, interest, capital gains, dividends, royalties, and

license fees;



(c)) the term "investor" means:



(i) any natural person who is a citizen of one of the Contracting Parties in

accordance with its laws and



(ii) any legal person that has its head office in the territory of one of the

of the parties or in a third country with a predominant interest in investor

one of the Contracting Parties;



(d)) the concept of "territory" means, in the case of Finland, the territory of the Republic of Finland and

each territory adjacent to the territorial waters of the Republic of Finland, on which

According to Finnish laws and in accordance with international law may be

exercised the rights of Finland in the exploration and use of natural resources

the sea-bed and its subsoil, and in the case of Czechoslovakia in the territory of that

consists of the Czech and Slovak Federative Republic.



(2) If, on the territory of one of the contracting parties located investments

the company, which does not apply with the definition referred to in paragraph (1) (c))

(ii) of this article, but in which investors of the other party

the predominant participation, previously referred to, the Contracting Party will be based on the

mutual agreement of the parties to consider this company as a protected

under this agreement with respect to the investment.



Article 2



The Scope Of The Agreement



(1) this Agreement shall apply only to investments made in accordance with the

laws, regulations and procedures of the host country.



(2) having regard to the provisions of paragraph (1) of this article, this agreement

apply to all investments made in the territory of the Contracting Parties

the investor of the other Contracting Party before and or after this agreement

entered into force.



Article 3



Investment protection



Each Contracting Party shall ensure, in accordance with its laws and regulations and in

accordance with international law, to investments of investors of the other party

always the proper and fair treatment.



Article 4



National treatment and MFN clause



(1) each Contracting Party shall provide the investments of investors of the other Contracting

the parties full security and protection, which in no case shall not be less

than the one that was given to investments of investors of any third

State. Each Contracting Party shall fulfill all commitments that could

arise in relation to the investment.



(2) Investors of one Contracting Party whose investments suffer losses

on the territory of the other Contracting Party because of war or of armed

the conflict, a State of emergency, riot or insurrection, will be provided

the other Contracting Party treatment no less favourable than this page

provides investors of any third State, with regard to the

compensation, refund or other assessment values. Such payments will be

freely transferable between the two Contracting Parties.



(3) the provisions of this Agreement relating to the provision of treatment no less

favourable than that provided to investors of any third

the State will not be understood as committed to one of the Contracting Parties

to provide investors of the other Contracting Party the benefit of any treatment,

advantages or benefits resulting from:



and) any existing or future Customs Union, economic Union or

the agreement on creating a free-trade area or other forms of

regional cooperation, which is involved in or participate in one of the

the Contracting Parties, or



(b)) any international agreement or arrangement relating wholly or

especially taxation.



Article 5



The expropriation



(1) no Contracting Party nevyvlastní or nationalization of investment

investors of the other Contracting Party, or does not do against investments of investors

the other party, any other measures having the same effect as

nationalization or expropriation with the exception of measures taken for the

the following conditions are true:



and the measures implemented in) the public interest and in accordance with the legal

procedure;



(b)) the measures are not discriminatory;



(c)) the measures are accompanied by provisions on payment of the immediate,

adequate and effective compensation. Such compensation will correspond to the market

the value of the investments concerned immediately before the measures referred to in

This paragraph or before they become publicly to these measures,

known, and will be freely transferable in freely convertible currencies, the Contracting

party at the central exchange rate of foreign currency prevailing on the day on which it was intended

its value. The transfer will be effected without undue delay to the time

that is normally required for the completion of formalities relating to the transfer, in

no case later than within six months. The refund will include the

interest to the date of payment in the appropriate commercial rate specified by Central Bank

the Contracting Parties.



(2) the provisions of paragraph (1) of this article shall also apply to transfers

of the investment, as well as in the event of the liquidation, the proceeds from the

liquidation.



Article 6



Transfers of investments and income



(1) each Contracting Party shall, in accordance with its laws and regulations,

without limitation, and undue delay, and in any case within

not exceeding six months, transfer in any convertible currency:



and) the net profit, dividends, royalties, fees for technical assistance and

other fees, interest and other payments connected with any

investments of investors of the other party;



(b)) the net proceeds of the total or partial of the liquidation or sale of any

investment established by investors of the other party;



(c) funds for payment of loans) investors of one Contracting Party from

investors of the other Contracting Parties that both parties considered

the investment; and



d) wages of the citizens of the other party, who work in its territory in

connection with investment.



(2) the Contracting Parties shall allow free transfer of movable property, also from their

territory which forms part of the investment of an investor of the other party.



(3) Contracting Parties shall provide when performing transfers under paragraphs 1 and 2

This article treatment no less favourable as provide transfers

related to investments of investors of any third State.



Article 7



The use of other rights



If the legislation of a Contracting Party, or

international obligations, which apply in addition to this agreement between the Contracting

the parties or they will pay in the future, the General or specific provisions,

which provides for investments of investors of the other party more favourable

treatment than this agreement has such adjustment shall take precedence over this agreement

the extent at which is more favourable.



Article 8



Disputes between a Contracting Party and an investor



(1) any dispute between an investor of one Contracting Party and the second

the Contracting Party of the investor's investment located in the territory of the other

a Contracting Party which has not been resolved amicably within three months of

written notice of the claim, may be at the request of either party in a dispute

presented to the solution either:



and the International Centre for) the settlement of disputes (hereinafter referred to as "the Centre") with the

taking into account the provisions of the Convention on the settlement of disputes between States and citizens

other States, opened for signature 18. March 1965 in

Washington, DC, provided that the two parties are members of this

Of the Convention; or



(b) the International Court of arbitration set up by) ad hoc according to Arbitration

the UNCITRAL rules in the version valid at the time. Parties in a dispute may

agree in writing to modify these rules.




(2) Notwithstanding the provisions of paragraph 1 of this article, which relates to the

submission of the dispute to arbitration, the investor has the right to decide

for the conciliation procedure before the dispute shall be submitted to arbitration

control.



(3) the decision of the Arbitration Court shall be recognised and executed by the Contracting

Parties in accordance with the Convention on the recognition and enforcement of foreign arbitral

the findings, New York 1958.



Article 9



Disputes between the Contracting Parties



(1) disputes between the Contracting Parties concerning the interpretation or application of

This agreement shall be settled by diplomatic means if possible.



(2) if it is not possible, the dispute between the parties as follows the issue, will be on the

the request of any Contracting Party, be submitted to arbitration.



(3) the arbitral tribunal will be established for each individual case

in the following way. Within two months of receipt of request for arbitration

the proceedings shall appoint one member of each party to the Arbitration Court.

These two members chosen by the citizen of a third State, that will be after the approval of the

the two parties appointed by the Chairman of the Arbitration Court. The President of the

will be appointed within two months of the appointment of two additional members of the arbitration

the Court.



(4) if the appointment has been made necessary within the time limit referred to in paragraph 3

of this article, each Contracting Party may, unless otherwise agreed on another

solutions, ask the President of the International Court of Justice, to make

the necessary appointment. If the President is a citizen of either Contracting Party, or

If any obstacle in carrying out that activity, it will be necessary

the appointment of the Vice-President asked. If a Vice-President of the citizen of any

Contracting Party, or if he has obstacles in the performance of this activity will be

asked for the appointment of the highest ranking member of the international

of the Court who is not a citizen of any of the Contracting Parties and has no

obstacles in the performance of this activity.



(5) the arbitral tribunal shall be decided by majority vote. Such a decision is for

the Contracting Parties shall be binding. Expenses of the President and members of the Arbitration Tribunal

shall be borne by the parties equally. However, the arbitral tribunal may, in its

decision specify that one Contracting Party is required to bear a larger share of

costs and this decision is binding on both Contracting Parties. Judge

the Court itself determines its rules of procedure.



Article 10



Subrogation (subrogation)



If one Contracting Party or its authorised institution shall provide the

any of its payment to the investor on the basis of assurances given by

in the context of an investment, the other party shall recognise, without

without prejudice to the rights of the first Contracting Party, under article 9, the conversion of all

the rights or claims of the first Contracting Party of the investor and the input

the first party or its authorised institution to any rights

or claim.



Article 11



Entry into force, duration and termination



(1) this Agreement shall enter into force thirty days after the Contracting

the parties have notified each other that the constitutional requirements have been met for the entry

This agreement enters into force.



(2) the agreement shall remain in force for a period of fifteen years. Will remain in the

the validity of a further 12 months from the time when one party

announced in writing to the other party notice of termination of the agreement.



(3) on the investments that have been made before the expiry of this

The agreement will be subject to the provisions of article 1-10 this agreement still

ten years after its expiry without having in this period

without prejudice to the right to use the basic rules of general international law.



Done at Prague on 6. November 1990 in two original copies in the

the Czech, Finnish and English languages, all three texts being equally

the same force. In the case of the ambiguities of the English version is decisive.



For the Government of the Czech and Slovak Federal Republic:



Václav Klaus, v.r.



For the Government of the Republic of Finland:



Pertti Salolainen v.r.