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1.Signed on June 9, 1999; Entered into force on June 9, 1999.
Tne Government of the Republic of China and the Government of t-
he Republic of Macedonia, hereinafter the "Parties",

Desiring to create favorable conditions for greater economic c-
ooperation and investments on the basis of principles of equali-
ty and mutuai benefit; and

Recognizing that the promotion and reciprocal protection of such
investments will be conducive to the stimulation of individual
business initiative will increase prosperity in both States;

Have agreed as follows:

For the purposes of this Agreement:
(a) "investment" means every kind of asset and in particular, t-
haugh not exclusively, includes:
(i) movable and immovable property as well as other such prop-
erty rights.
(ii) shares in and stock and debentures of a company and any
other form of interest in a company;
(iii) claims to money, or to any performance under contract h-
aving an economic value;
(iv) intellectual property rights, including without limitati-
on the rights relating to trademark, patent, new design
patent copyright, trade secret, integrated circuit layout
protection, and all other rights resulting from intellec-
tual activities in the industrial scientific, literary or
artistic fields and tradenames and goodwill, in accordan-
ce with each Party's laws and regulations;
(v) rights or permits conferred by law or under contract, inc-
luding concessions to search for, cultivate, extract or e-
xploit natural resources;
The said term "investment" shall refer to those investments
admitted in the territories of the Parties in accordance wi-
th relevant laws, regulations and administrative practices.
Any change in the form in which assets are invested does not
affect their character as investments.
(b) "returns" means the amounts yielded by an investment and in
particular, though not exclusively, includes profit, intere-
st, capital gains, dividends, royalties and fees;
(c) "investor" means any natural person who is a national of ei-
ther Party or a juristic person such as a corporation, firm
or associations incorporated or established under the law in
force of either Party.
(d) "territory" means
(i) For the Republic of China: The territory, including the t-
erritorial sea and any maritime area situated beyond the
territorial sea, over which the Republic of China may exe-
rcise sovereign rights or jurisdiction in accordance with
relevant international and domestic laws.
(ii) For the Republic of Macedonia: The territory, including
land, water and air space, over which the Republic of Ma-
cedonia exercises sovereign rights and jurisdiction acco-
rding to international law.

Promotian and Admission af lnvesrments
(1) Each Party shall, subject to its laws and regulations in the
field of foreign investment, encourage investments in its t-
erritory by investors of the other Party, and, subject to i-
ts right to exercise powers conferred by its laws, shall ad-
mit such investment.
(2) Each Party shall grant, in accordance with its laws and reg-
ulations, the necessary permits in connection with such inv-
estments and with the implementation of licensing agreements
and contracts for technical, commercial or administrative a-

Treatment of lnvestments
(1) Investments and returns of investors of either Party shall
at all times be accorded fair and equitable treatment and s-
hall enjoy full protection in the territory of the other Pa-
rty. Neither Party shall in any way impair, by adopting unr-
easonable or discriminatory measures, the management, maint-
enance, use, enjoyment or disposal of investments in its te-
rritory of investors of the other Party.
(2) Each Party shall accord investments made by investors of the
other Party in the former's territory a treatment no less f-
avorable than that granted to investments of its own invest-
ors, or to investments of investors of any third State, whi-
chever is more favorable.
(3) The provisions of paragraph (2) shall not be construed so as
to oblige one Party to extend to the investors of the other
Party the benefit of any treatment, preference or privilege
resulting from:
(a) any existing or future customs union, free trade area, co-
mmon market, any similar international agreement or any i-
nterim arrangement leading up to such customs union, free
trade area, or common market to which either of the Parti-
es is or may become a party, or
(b) any international agreement or arrangement relating wholly
or mainly to taxation or any domestic legislation relating
wholly or mainly to taxation.

Compensation for Losses
Investors of either Party whose investments in the territory of
the other Party suffer losses owing to war or other armed confl-
ict, revolution, revolt, insurrection, riot, a state of national
emergency or any other similar events shall be accorded by the
latter Party treatment, as regards restitution, indemnification,
compensation or other settlement, no less favorable than that w-
hich the latter Party accords to its own investors or investors
of any third State, whichever is more favorable.

(1) investments of investors of either Party shall not be natio-
nalized, expropriated or subjected to measures having effec-
ts equivalent to nationalization or expropriation (hereinaf-
ter referred to as "expropriation") in the territory of the
other Party except in the public interest, under due process
of law, on a non-discriminatory basis and against prompt, a-
dequate and effective compensation. Such compensation shall
amount to the market value of the investment expropriated i-
mmediately before the expropriation or before the impending
expropriation became public knowledge, whichever is earlier,
shall include interest calculated according to the annual L-
IBOR rate until the date of payment, shall be made without
delay, and be effectively realizable.
(2) The investor affected thereby shall have a right, under the
law of either Party making the expropriation, to prompt rev-
iew, by judicial or other independent authorities of that P-
arty in accordance with the procedures established by the l-
aw of that Party, of his or its case and of the valuation of
his or its investment in accordance with the principles set
out in this Article.

Transfers of Investments ond Returns
(1) Each Party, in whose territory investments have been made by
investors of the other Party, shall grant those investors a
free transfer of the payments relating to these investments,
particularly of:
(a) the capital and additional sums necessary for the maintena-
nce and development of the investment;
(b) gains, profits, interests, dividends and other current inc-
(c) funds in repayment of loans including interest regularly c-
ontracted and documented and directly related to a specific
(d) royalties and fees;
(e) the proceeds from a total or partial sale or liquidation of
an investment;
(f) compensations provided for in Articles 4 and 5;
(g) the earnings of nationals of one Party who are allowed to
work in connection with art investment in the territory of
the other.
(2) Transfers shall be effected without delay in a freely conve-
rtible currency in the normal applicable exchange rate at t-
he date of the transfer, in accordance with the procedures
established by the Party in whose territory the investment
was made, provided that all financial obligations of the sa-
id investors to this Party have been fulfilled.

Settlement of Disputes between an Investor and a Party
(1) Disputes between an investor of either Party and the other
Party concerning an obligation of the latter under this Agr-
eement in relation to an investment of the fonner which have
not been amicably settled shall, after a period of three mo-
nths from written notification of a claim, be submitted to
international arbitration if the investor concerned so wish-
(2) Where the dispute is referred to international arbitration,
the investor and the Party concerned in the dispute may agr-
ee to refer the dispute either to:
(a) the international Court of Arbitration of the international
Chamber of Commerce in accordance with its Arbitration Rul-
es; or
(b) an international arbitrator or ad hoc arbitration tribunal
to be appointed by a special agreement or established under
the Arbitration Rules of the United Nations Commission on
International Trade Law.
If after a period of three months from written notification
of the claim there is no agreement to one of the above alte-
rnative procedures, the dispute shall at the request in wri-
ting of the investor concerned be submitted to arbitration
at the International Court of Arbitration of the Internatio-
nal Chamber of Commerce. The parties to the dispute may agr-
ee in writing to modify the rules applicabie to the arbitra-
tion. The award shall be final and binding on the parties to
the dispute. Each party undertakes to enforce the awards.
(3) The arbitration award shall be based on the provisions of t-
his Agreement, the national legislation of the Party on the
territory of which the investment has been made, and the ru-
les and generally accepted principles of international law.

Disputes between the Parties
(1) Disputes between the Parties concerning the interpretation
or application of this Agreement shall, if possible, be ami-
cably settled through consultation.
(2) If a dispute between the Parties cannot thus be settled wit-
hin a period of six months, it shall upon the request of ei-
ther Party be submitted to an arbitral tribunal.
(3) Such an arbitral tribunal shall be constituted for each ind-
ividual case in the following way. Within two months of the
receipt of the request for arbitration, each Party shall ap-
point one member of the tribunal. Those two members shall t-
hen select a national of a third State who on approval by t-
he Parties shall be appointed Chairman of the tribunal. The
Chairman shall be appointed within two months from the date
of appointment of the other two members.
(4) If within the periods specified in paragraph (3) of this ar-
ticle the necessary appointments have not been made, either
Party may, in the absence of any other agreement, invite the
Chairman of the international Court of Arbitration of the I-
nternational Chamber of Commerce to make any necessary appo-
intments. If the Chairman is a national of either Party or
if he is otherwise prevented from discharging the said func-
tion, the Vice-Chairman shall be invited to make the necess-
ary appointments. If the Vice-Chairman is a national of eit-
her Party or if he too is prevented from discharging the sa-
id function, the Member of the International Court of Arbit-
ration of the International Chamber of Commerce next in sen-
iority who is not a national of either Party shall be invit-
ed to make the necessary appointments.
(5) The arbitral tribunal shall reach its decision by a majority
of votes. Each Party shall bear the costs of its own member
of the tribunal and of its representation in the arbitral p-
roceedings; the costs of the Chairman and the remaining cos-
ts shall be borne in equal parts by the Parties. The tribun-
al may, however, in its decision direct that a higher propo-
rtion of this costs shall be borne by one of the two Parties
The tribunal shall determine its own procedure.
(6) The award reached by the arbitral tribunal shall be final a-
nd binding on the Parties.

(1) If a Party or its designated agency makes a payment to its
own investor under a guarantee it has given in respect of an
investment in the territory of the other Party, the latter
Party shall recognize the assignment, whether by law or by
legal transaction, to the former Party of all the rights and
claims of the indemnified investor, and shall recognize that
the former Party or its designated agency is entitled to ex-
ercise such rights and enforce such claims by virtue of sub-
rogation, to the same extent as the original investor. This
paragraph shall not prejudice the right of the latter Party,
in whose territory the investment was made, to seek the ful-
fillment of the obligations of the investors concerned.
(2) In case of subrogation of paragraph 1 of this Article, the
investor concerned shall no longer have the right to instit-
ute a complaint once the assignment has been transferred to
the Party or the designated agency.

Application of other Rules
(1) If the provisions of the law of either Party or obligations
under international law existing at present or established
hereafter between the Parties in addition to the rules cont-
ained in this Agreemenf whether general or specific, entitl-
ing investments and returns of investors of the other Party
to treatment more favorable than those which provided hereu-
nder Agreement, such rules shall prevail.
(2) Each Party shall observe any obligation it may have entered
into with regard to investments of investors of the other P-

Scope of the Agreement
This Agreement shall apply to all investments, whether made bef-
ore or after the date of entry into force of this Agreement, but
shall not apply to any dispute which arose before entry into fo-
rce of this Agreement.

Exchange of Information
Upon the request of either Party, the other Party will provide
the necessary information on the laws, regulations, administrat-
ive practice or policies the application of which influences the
investments encompassed by this Agreement.

Final Provisions
(i) This Agreement shall enter into force on the date of signat-
Each Contracting Party shall notify the other through diplo-
matic channels that the necessary procedure, according to t-
he domestic legislative, has been fulfilled.
(2) This Agreement shall remain in force for a period of ten ye-
ars. Thereafter it shall continue in force until the expira-
tion of twelve months from the date on which either Party s-
hall have given written notice of termination to the other.
(3) In respect of investment made prior to the date when the no-
tice of termination becomes effective, the provisions of ar-
ticles 1 to 12 shall remain in force with respect to such i-
nvestment for a fiurther period of twenty years from that d-
IN WITNESS WHEREOF the undersigned, being duly authorized there-
to, have signed this Agreement.

Done in duplicate in Taipei on the 9th of June 1999, in the Chi-
nese, Macedonia and English languages, all the texts being equa-
lly authentic. IN case of any divergence of interpretation, the
English text shall prevail.

For the Govennment of For the Government of
the Republic of China the Republic of Macedonia

Chih-Gang WAMG Nikola GRUEVSKI
Minister of Economic Affairs Minister of Trade