AGREEMENT BETWEEN THE PEOPLE'S REPUBLIC OF CHINA AND JAPANCONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT
AGREEMENT BETWEEN THE PEOPLE'S REPUBLIC OF CHINA AND JAPANCONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENT
Whole Doc.
The Government of the People's Republic of China and the Government
of Japan, Desiring to strengthen economic cooperation between the two
countries, Intending to create favorable conditions for investment by
nationals and companies of each country within the territory of the other
country, by means of the favorable treatment for and the protection of
investment, business activities in connection therewith and investments,
and Recognizing that the encouragement and reciprocal protection of
investment will stimulate economic and technological exchanges between the
two countries, after the negotiations between the representatives of
respective Governments, Have agreed as follows:
Article 1
For the purposes of the present Agreement:
(1) The term "investments" comprises every kind of asset, used as
investment by nationals or companies of one Contracting Party within the
territory of the other Contracting Party in accordance with, or not in
violation of the laws and regulations of the latter Contracting Party at
the time of investment, including:
(a) shares and other types of holding of companies;
(b) claims to money or to any performance under contract having a
financial values;
(c) rights with respect to movable and immovable property;
(d) patents of invention, rights with respect to trade marks, trade
names, service marks and any other industrial property, and rights with
respect to know- how; and
(e) concession rights including those for the exploration and
exploitation of natural resources.
(2) The term "returns" means the amounts yielded by an investment, in
particular, profit, interest, capital gains, dividends royalties and fees.
(3) The term "nationals" means, in relation to one Contracting Party,
physical persons possessing the nationality of that Contracting Party.
(4) The term "companies" means:
(a) in relation to the People's Republic of China, enterprises, other
economic organizations and associations; and
(b) in relation to Japan, corporations, partnerships, companies and
associations whether or not with limited liability, whether or not with
legal personality and whether or not for pecuniary profit.
Companies constituted under the applicable laws and regulations of
one Contracting Party and having their seat within its territory shall be
deemed companies of that Contracting Party.
Article 2
1. Each Contracting Party shall within its territory promote as far
as possible investment by nationals and companies of the other Contracting
Party and admit such investment in accordance with the applicable laws and
regulations of the former Contracting Party.
2. Nationals and companies of either Contracting Party shall within
the territory of the other Contracting Party be accorded treatment to less
favorable than that accorded to nationals and companies of any third
country in respect of the admission of investment and the matters in
connection therewith.
Article 3
1. The treatment accorded by either Contracting Party within its
territory to nationals and companies of the other Contracting Party with
respect to investments, returns and business activities in connection with
the investment shall not be less favorable than that accorded to nationals
and companies of any third country.
2. The treatment accorded by either Contracting Party within its
territory to nationals and companies of the other Contracting Party with
respect to investments, returns and business activities in connection with
the investment shall not be less favorable than that accorded to nationals
and companies of the former Contracting Party.
3. The term "business activities in connection with the investment"
referred to in the provisions of the present Article includes:
(a) the maintenance of branches, agencies, offices, factories and
other establishments appropriate to the conduct of business activities;
(b) the control and management of companies which they have
established or acquired;
(c) the employment and discharge of specialists including technical
experts, executive personnel and attorneys, and other workers;
(d) the making and performance of contracts.
Article 4
The treatment accorded by either Contracting Party within its
territory to nationals and companies of the other Contracting Party with
respect to access to the courts of justice and administrative tribunals
and agencies both in pursuit and in defense of their rights shall not be
less favorable than that accorded to nationals and companies of the former
Contracting Party or to nationals and companies of any third country.
Article 5
1. Investments and returns of nationals and companies of either
Contracting Party shall receive the most constant protection and security
within the territory of the other Contracting Party.
2. Investments and returns of nationals and companies of either
Contracting Party shall not be subjected to expropriation, nationalization
or any other measures the effects of which would be similar to
expropriation or nationalization, within the territory of the other
Contracting Party unless such measures are taken for a public purpose and
in accordance with laws and regulations, are not discriminatory, and, are
taken against compensation.
3. The compensation referred to in the provisions of paragraph 2 of
the present Article shall be such as to place the nationals and companies
in the same financial position as that in which the nationals and
companies would have been if expropriation, nationalization or any other
measures the effects of which would be similar to expropriation or
nationalization, referred to in the provisions of paragraph 2 of the
present Article, had not been taken. Such compensation shall be paid
without delay. It shall be effectively realizable and freely transferable
at the exchange rate in effect on the date used for the determination of
amount of compensation.
4. Nationals and companies of either Contracting Party whose
investments and returns are subjected to expropriation, nationalization or
any other measures the effects of which would be similar to expropriation
or nationalization, shall have the right of access to the competent courts
of justice and administrative tribunals and agencies of the other
Contracting Party taking the measures concerning such measures and the
amount of compensation in accordance with the applicable laws and
regulations of such other Contracting Party.
5. The treatment accorded by either Contracting Party within its
territory to nationals and companies of the other Contracting Party with
respect to the matters set forth in the provisions of paragraphs 1 to 4 of
the present Article shall not be less favorable than that accorded to
nationals and companies of any third country.
Article 6
Nationals and companies of either Contracting Party who suffer within
the territory of the other Contracting Party damages in relation to their
investments, returns or business activities in connection with their
investment, owing to the outbreak of hostilities or a state of national
emergency, shall, in case any measure is taken by the latter Contracting
Party in relation to the outbreak of such hostilities or state of such
national emergency, be accorded treatment no less favorable than that
accorded to nationals and companies of any third country.
Article 7
If either Contracting Party makes payment to any of its nationals or
companies under a guarantee it has assumed in respect of investments and
returns in the territory of the other Contracting Party, such other
Contracting Party shall recognize the transfer to the former Contracting
Party of any right or claim of such national or company in such
investments and returns on account of which such payment is made and the
subrogation of the former Contracting Party to any claim or cause of
action of such national or company arising in connection therewith. As
regards the transfer of payment to be made to that former Contracting
Party by virtue of such transfer or right or claim, the provisions of
paragraphs 2 to 5 of Article 5 and Article 8 shall apply mutates mutants.
Article 8
1. Nationals and companies of either Contracting Party shall be
guaranteed by the other Contracting Party freedom of payments,
remittances, and transfers of financial instruments or funds including
value of liquidation of an investment between the territories of the two
Contracting Parties as well as between the territories of such other
Contracting Party and of any third country.
2. The provisions of paragraph 1 of the present Article shall not
preclude either Contracting Party from imposing exchange restrictions in
accordance with its applicable laws and regulations.
Article 9
The present Agreement shall also apply to investments and returns of
nationals and companies of either Contracting Party acquired within the
territory of the other Contracting Party in accordance with the applicable
laws and regulations of such other Contracting Party prior to the entering
into force of the present Agreement and on or after September 29, 1972.
Article 10
The provisions of the present Agreement shall apply irrespective of
the existence of diplomatic or consular relations between the Contracting
Parties.
Article 11
1. Any dispute between a national or company of either Contracting
Party and the other Contracting Party with respect to investment within
the territory of the latter Contracting Party shall, as far as possible,
be settled amicably through consultation between the parties to the
dispute.
2. If a dispute concerning the amount of compensation referred to in
the provisions of paragraph 3 of Article 5 between a national or company
of either Contracting Party and the other Contracting Party or other
entity, charged with the obligation for making compensation under its laws
and regulations, cannot be settled within six months from the date either
party requested consultation for the settlement, such dispute shall, at
the request of such national or company, be submitted to a conciliation
board or an arbitration board, to be established with reference to the
Convention on the Settlement of Investment Disputes between States and
Nationals of Other States done at Washington on March 18, 1965
(hereinafter referred to as "the Washington Convention"). Any dispute
concerning other matters between a national or company of either
Contracting Party and the other Contracting Party may be submitted by
mutual agreement, to a conciliation board or an arbitration board as
stated above. In the event that such national or company has resorted to
administrative or judicial settlement within the territory of the latter
Contracting Party, such dispute shall not be submitted to arbitration.
3. The arbitration board referred to in the provisions of paragraph 2
of the present Article shall be composed of three arbitrators, with each
party appointing one arbitrator within a period of sixty days from the
date of receipt by either party from the other party of a notice
requesting arbitration of the dispute referred to in the provisions of
paragraph 2 of the present Article, and the third arbitrator to be agreed
upon as the President of the arbitration board by the two arbitrators so
chosen within a further period of ninety days, provided that the third
arbitrator shall not be a national of either Contracting Party.
4. If the third arbitrator is not agreed upon between the arbitrators
appointed by each party within the period referred to in the provisions of
paragraph 3 of the present Article, either party shall request the third
party agreed upon in advance by both parties to appoint the third
arbitrator who shall be a national of a third country which has diplomatic
relations with both Contracting Parties.
5. The arbitral procedures shall be determined by the arbitration
board with reference to the Washington Convention.
6. The decision of the arbitration board shall be final and binding.
Execution of the decision of the arbitration board shall be governed by
the laws and regulations concerning the execution of decision in force in
the State in whose territories such execution is sought. The arbitration
board shall state the basis of its decision and state the reasons at the
request of either party.
7. Each party shall bear the cost of its own arbitrator and its
representation in the arbitral proceedings. The cost of the President of
the arbitration board in discharging his duties and the remaining costs of
the arbitration board shall be borne equally by the parties concerned.
8. When and after a case is submitted to the arbitration board
referred to in the provisions of paragraph 2 of the present Article, no
claim concerning such case shall be made between states.
Article 12
Companies of any third country in which nationals and companies of
either Contracting Party have a substantial interest shall within the
territory of the other Contracting Party be accorded, unless international
agreement between such other Contracting Party and such third country
concerning investment and protection of investments is in effect;
(1) treatment no less favorable than that accorded, within the
territory of the latter Contracting Party, to companies of any third
country in which nationals and companies of any other third country have a
substantial interest with respect to the matters set forth in the
provisions of paragraph 2 of Article 2, Article 3, paragraphs 1 to 4 of
Article 5, Article 6 and Article 9; and
(2) treatment no less favorable than that accorded, within the
territory of the latter Contracting Party, to companies of any third
country in which nationals and companies of the latter Contracting Party
have a substantial interest with respect to the matters set forth in the
provisions of Article 3, paragraphs 1 to 4 of Article 5, Article 6 and
Article 9.
Article 13
1. Each Contracting Party shall accord sympathetic consideration to,
and shall afford adequate opportunity for consultation regarding, such
representations as the other Contracting Party may make with respect to
any matter affecting the operation of the present Agreement.
2. Any dispute between the Contracting Parties as to the
interpretation or application of the present Agreement, not satisfactorily
adjusted by diplomacy, shall be referred for decision to an arbitration
board. Such arbitration board shall be composed of three arbitrators, with
each Contracting Party appointing one arbitrator within a period of sixty
days from the date of receipt by either Contracting Party from the other
Contracting Party of a note requesting arbitration of the dispute, and the
third arbitrator to be agreed upon as the president by the two arbitrators
so chosen within a further period of ninety days, provided that the third
arbitrator shall not be a national of either Contracting Party.
3. If the third arbitrator is not agreed upon between the arbitrators
appointed by each Contracting Party within the period referred to in the
provisions of paragraph 2 of the present Article, the Contracting Parties
shall request the President of the International Court of Justice to
appoint the third arbitrator who shall not be a national of either
Contracting Party.
4. The arbitration board shall reach its decisions by a majority of
votes. Such decisions shall be final and binding.
5. The arbitral procedures shall be determined by the arbitration
board.
6. Each Contracting Party shall bear the cost of its own
arbitrator and its representation in the arbitral proceedings. The
cost of the President of the arbitration board in discharging his duties
and the remaining costs of the arbitration board shall be borne equally by
both Contracting Parties.
Article 14
Both Contracting Parties shall establish a Joint Committee,
consisting of representatives of the Governments of both Contracting
Parties, for the purpose of reviewing the implementation of the present
Agreement and the matters related to investment between the two countries,
holding consultations on the operation and the matters related to the
operation of the present Agreement in connection with the development of
legal systems or of policies of either or both of the two countries with
respect to the receiving of foreign investment, and, as necessary, making
appropriate recommendations to the Governments of both Contracting
Parties. The Joint Committee shall meet alternately in Beijing ant Tokyo
at the request of either Contracting Party.
Article 15
1. The present Agreement shall enter into force on the thirtieth day
after the date of exchange of notifications confirming that the procedures
required under domestic laws for its entry into force have been completed
in each country. It shall remain in force for a period of ten years and
shall continue in force thereafter until terminated in accordance with the
provisions of paragraph 2 of the present Article.
2. Either Contracting Party may, by giving one year's advance notice
in writing to the other Contracting Party, terminate the present Agreement
at the end of the initial ten-year period or at any time thereafter.
3. In respect of investments and returns acquired prior to the date
of termination of the present Agreement, the provisions of Articles 1 to
14 shall continue to be effective for a further period of fifteen years
from the date of termination of the present Agreement.
IN WITNESS WHEREOF the undersigned, being duly authorized by their
respective Governments, have signed the present Agreement.
DONE at Beijing on the twenty-seventh day of August, 1988, in
duplicate, in the Chinese, Japanese and English languages, each text being
equally authentic. In case of any divergence of interpretation, the
English text shall prevail.
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
PROTOCOL
At the time of signing the Agreement between the People's Republic of
China and Japan concerning the Encouragement and Reciprocal protection of
Investment (hereinafter referred to as "the Agreement"), the undersigned
have agreed upon the following provisions which shall form an integral
part of the Agreement:
1. Nothing in the Agreement shall be construed so as to grant any
right or impose any obligation in respect of copyright.
2. Nothing in the Agreement shall be construed so as to affect the
obligations undertaken by either Contracting Party towards the other
Contracting Party by virtue of the provisions of the Paris Convention for
the Protection of Industrial Property of March 20, 1883, or of any
subsequent revision thereof, so long as such provisions are in force
between the Contracting Parties.
3. For the purpose of the provisions of paragraph 2 of Article 3 of
the Agreement, it shall not be deemed "treatment less favorable" for
either Contracting Party to accord discriminatory treatment, in accordance
with its applicable laws and regulations, to nationals and companies of
the other Contracting Party, in case it is really necessary for the reason
of public order, national security or sound development of national
economy.
4. The provisions of paragraph 2 of Article 3 of the Agreement shall
not prevent either Contracting Party from prescribing special formalities
in connection with the activities of foreign nationals and companies
within its territory, but such formalities may not impair the substance of
the rights set forth in the aforesaid paragraph.
5. Either Contracting Party shall in accordance with its applicable
laws and regulations give sympathetic consideration to applications for
the entry, sojourn and residence of nationals of the other Contracting
Party who wish to enter the territory of the former Contracting Party and
remain therein for the purpose of making investment and carrying on
business activities in connection therewith.
6. Notwithstanding the provisions of Article 3 of the Agreement,
either contracting Party reserves the right to accord specials tax
advantages on the basis of reciprocity of by virtue of agreements for the
avoidance of double taxation or for the prevention of fiscal evasion.
7. The provisions of paragraph 2 of Article 8 of the Agreement shall
not affect the rights and obligations with respect to exchange
restrictions, that, either Contracting Party has or may have as a
Contracting Party to the Articles of Agreement of the International
Monetary Fund.
8. The provisions of paragraph 1 of Article 11 of the Agreement shall
not be construed so as to prevent nationals and companies of either
Contracting Party from seeking administrative or judicial settlement
within the territory of the other Contracting Party.
9. The term "substantial interest" as used in the provisions of
Article 12 of the Agreement means such extent of interest as to permit the
exercise of control or decisive influence on the company. Whether an
interest held by nationals and companies of either Contracting Party
amounts to a substantial interest shall be decided in each case through
consultations between the Contracting Parties.
IN WITNESS WHEREOF the undersigned, being duly authorized by their
respective Governments, have signed the present Protocol.
DONE at Beijing on the twenty-seventh day of August, 1988, in
duplicate, in the Chinese, Japanese and English languages, all three texts
being equally authentic. In case of any divergence of interpretation, the
English text shall prevail.
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
AGREED MINUTES
The undersigned wish to record the following understanding which they
have reached during the negotiations for the Agreement between the
People's Republic of China and Japan concerning the Encouragement and
Reciprocal Protection of Investment (hereinafter referred to as "the
Agreement") signed today:
1. It is confirmed that, the provisions of the Agreement shall apply
to assets related to offices of resident representatives established by
nationals or companies of either Contracting Party within the territory of
the other Contracting Party in accordance with, or not in violation of the
laws and regulations of such other Contracting Party at the time of
establishment.
2. Both Contracting Parties confirm that, "treatment less favorable"
referred to in the provisions of paragraph 2 of Article 3 of the Agreement
includes the measures taken in a discriminatory manner, which would
restrict or impede following activities: the purchase of raw or auxiliary
materials, of power of fuel, or of means of production or operation of any
kind; the marketing of products inside or outside the country; the
obtaining loans inside or outside the country; the introduction of
technology; and the establishment of branches or offices of resident
representatives outside the country. This paragraph shall not affect the
provisions of paragraph 3 of Protocol of the Agreement.
3. It is confirmed that with reference to the provisions of Article 5
of the Agreement, the compensation referred to in the provisions of
paragraph 3 of the aforesaid Article shall represent the equivalent of the
value of the investments and returns affected at the time when
expropriation, nationalization, or any other measures the effects of which
would be similar to expropriation or nationalization are publicly
announced or when such measure are taken, whichever is the earlier, and
shall carry an appropriate interest taking into account the length of time
until the time of payment.
4. The term "without delay" referred to in the provisions of
paragraph 3 of Article 5 of the Agreement shall not exclude a reasonable
period of time necessary for deciding amount, way of payment and so on.
Beijing, August 27, 1988
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
interpretation or application of the present Agreement, not satisfactorily
adjusted by diplomacy, shall be referred for decision to an arbitration
board. Such arbitration board shall be composed of three arbitrators, with
each Contracting Party appointing one arbitrator within a period of sixty
days from the date of receipt by either Contracting Party from the other
Contracting Party of a note requesting arbitration of the dispute, and the
third arbitrator to be agreed upon as the president by the two arbitrators
so chosen within a further period of ninety days, provided that the third
arbitrator shall not be a national of either Contracting Party.
3. If the third arbitrator is not agreed upon between the arbitrators
appointed by each Contracting Party within the period referred to in the
provisions of paragraph 2 of the present Article, the Contracting Parties
shall request the President of the International Court of Justice to
appoint the third arbitrator who shall not be a national of either
Contracting Party.
4. The arbitration board shall reach its decisions by a majority of
votes. Such decisions shall be final and binding.
5. The arbitral procedures shall be determined by the arbitration
board.
6. Each Contracting Party shall bear the cost of its own
arbitrator and its representation in the arbitral proceedings. The
cost of the President of the arbitration board in discharging his duties
and the remaining costs of the arbitration board shall be borne equally by
both Contracting Parties.
Article 14
Both Contracting Parties shall establish a Joint Committee,
consisting of representatives of the Governments of both Contracting
Parties, for the purpose of reviewing the implementation of the present
Agreement and the matters related to investment between the two countries,
holding consultations on the operation and the matters related to the
operation of the present Agreement in connection with the development of
legal systems or of policies of either or both of the two countries with
respect to the receiving of foreign investment, and, as necessary, making
appropriate recommendations to the Governments of both Contracting
Parties. The Joint Committee shall meet alternately in Beijing ant Tokyo
at the request of either Contracting Party.
Article 15
1. The present Agreement shall enter into force on the thirtieth day
after the date of exchange of notifications confirming that the procedures
required under domestic laws for its entry into force have been completed
in each country. It shall remain in force for a period of ten years and
shall continue in force thereafter until terminated in accordance with the
provisions of paragraph 2 of the present Article.
2. Either Contracting Party may, by giving one year's advance notice
in writing to the other Contracting Party, terminate the present Agreement
at the end of the initial ten-year period or at any time thereafter.
3. In respect of investments and returns acquired prior to the date
of termination of the present Agreement, the provisions of Articles 1 to
14 shall continue to be effective for a further period of fifteen years
from the date of termination of the present Agreement.
IN WITNESS WHEREOF the undersigned, being duly authorized by their
respective Governments, have signed the present Agreement.
DONE at Beijing on the twenty-seventh day of August, 1988, in
duplicate, in the Chinese, Japanese and English languages, each text being
equally authentic. In case of any divergence of interpretation, the
English text shall prevail.
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
PROTOCOL
At the time of signing the Agreement between the People's Republic of
China and Japan concerning the Encouragement and Reciprocal protection of
Investment (hereinafter referred to as "the Agreement"), the undersigned
have agreed upon the following provisions which shall form an integral
part of the Agreement:
1. Nothing in the Agreement shall be construed so as to grant any
right or impose any obligation in respect of copyright.
2. Nothing in the Agreement shall be construed so as to affect the
obligations undertaken by either Contracting Party towards the other
Contracting Party by virtue of the provisions of the Paris Convention for
the Protection of Industrial Property of March 20, 1883, or of any
subsequent revision thereof, so long as such provisions are in force
between the Contracting Parties.
3. For the purpose of the provisions of paragraph 2 of Article 3 of
the Agreement, it shall not be deemed "treatment less favorable" for
either Contracting Party to accord discriminatory treatment, in accordance
with its applicable laws and regulations, to nationals and companies of
the other Contracting Party, in case it is really necessary for the reason
of public order, national security or sound development of national
economy.
4. The provisions of paragraph 2 of Article 3 of the Agreement shall
not prevent either Contracting Party from prescribing special formalities
in connection with the activities of foreign nationals and companies
within its territory, but such formalities may not impair the substance of
the rights set forth in the aforesaid paragraph.
5. Either Contracting Party shall in accordance with its applicable
laws and regulations give sympathetic consideration to applications for
the entry, sojourn and residence of nationals of the other Contracting
Party who wish to enter the territory of the former Contracting Party and
remain therein for the purpose of making investment and carrying on
business activities in connection therewith.
6. Notwithstanding the provisions of Article 3 of the Agreement,
either contracting Party reserves the right to accord specials tax
advantages on the basis of reciprocity of by virtue of agreements for the
avoidance of double taxation or for the prevention of fiscal evasion.
7. The provisions of paragraph 2 of Article 8 of the Agreement shall
not affect the rights and obligations with respect to exchange
restrictions, that, either Contracting Party has or may have as a
Contracting Party to the Articles of Agreement of the International
Monetary Fund.
8. The provisions of paragraph 1 of Article 11 of the Agreement shall
not be construed so as to prevent nationals and companies of either
Contracting Party from seeking administrative or judicial settlement
within the territory of the other Contracting Party.
9. The term "substantial interest" as used in the provisions of
Article 12 of the Agreement means such extent of interest as to permit the
exercise of control or decisive influence on the company. Whether an
interest held by nationals and companies of either Contracting Party
amounts to a substantial interest shall be decided in each case through
consultations between the Contracting Parties.
IN WITNESS WHEREOF the undersigned, being duly authorized by their
respective Governments, have signed the present Protocol.
DONE at Beijing on the twenty-seventh day of August, 1988, in
duplicate, in the Chinese, Japanese and English languages, all three texts
being equally authentic. In case of any divergence of interpretation, the
English text shall prevail.
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
AGREED MINUTES
The undersigned wish to record the following understanding which they
have reached during the negotiations for the Agreement between the
People's Republic of China and Japan concerning the Encouragement and
Reciprocal Protection of Investment (hereinafter referred to as "the
Agreement") signed today:
1. It is confirmed that, the provisions of the Agreement shall apply
to assets related to offices of resident representatives established by
nationals or companies of either Contracting Party within the territory of
the other Contracting Party in accordance with, or not in violation of the
laws and regulations of such other Contracting Party at the time of
establishment.
2. Both Contracting Parties confirm that, "treatment less favorable"
referred to in the provisions of paragraph 2 of Article 3 of the Agreement
includes the measures taken in a discriminatory manner, which would
restrict or impede following activities: the purchase of raw or auxiliary
materials, of power of fuel, or of means of production or operation of any
kind; the marketing of products inside or outside the country; the
obtaining loans inside or outside the country; the introduction of
technology; and the establishment of branches or offices of resident
representatives outside the country. This paragraph shall not affect the
provisions of paragraph 3 of Protocol of the Agreement.
3. It is confirmed that with reference to the provisions of Article 5
of the Agreement, the compensation referred to in the provisions of
paragraph 3 of the aforesaid Article shall represent the equivalent of the
value of the investments and returns affected at the time when
expropriation, nationalization, or any other measures the effects of which
would be similar to expropriation or nationalization are publicly
announced or when such measure are taken, whichever is the earlier, and
shall carry an appropriate interest taking into account the length of time
until the time of payment.
4. The term "without delay" referred to in the provisions of
paragraph 3 of Article 5 of the Agreement shall not exclude a reasonable
period of time necessary for deciding amount, way of payment and so on.
Beijing, August 27, 1988
For the Government For the Government
of the People's Republic of Japan:
of China:
(Zheng Tuobin) (T. Nakajima)
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