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1.Signed on April 30, 1996; Entered into force on April 30, 1996.
The Taipei Economic and Trade Office (TETO) in Thailand and the
Thailand Trade and Economic Office (TTEO) in Taipei, hereinafter
referred to as "Contracting Parties";
Desiring to create favourable conditions for greater economic c-
ooperation and investment based on the principle of mutual bene-
Recognising that the encouragement and reciprocal protection of
such investments will be conducive to stimulating business init-
iative and increasing prosperity;
Have agreed as follows:

For the purposes of this Agreement:
1.the term "relevant place" shall mean the places of operation
to be designated by the respective authorities of the Contrac-
ting Parties;
2.the term "investor" shall mean:
(a) any physical person who is considered as citizen according
to the laws and regulations in either relevant place, or
(b) any company or any juridical person which is incorporated or
constituted under the laws in force in either relevant place
3.the term "investment" shall mean any kind of asset invested by
any investor of either relevant place in the other relevant p-
lace in accordance with the laws and regulations in force in
the latter relevant place and in particular, though not exclu-
sively, includes:
(a) movable and immovable property as well as other property ri-
ghts such as mortgages, liens, or pledges,
(b) shares, stock and debentures of companies wherever incorpor-
ated or interests in the property of such companies,
(c) claim to money or to any performance under contract having
financial value,
(d) intellectual property rights and goodwill,
(e) business concessions conferred by law or under contract, in-
cluding concessions to search for, cultivate, extract, or e-
xploit natural resources;
4.the term "returns" shall mean the amounts yielded by an inves-
tment and, in particular, though not exclusively, shall inclu-
de profit, interest, capital gains, dividends, royalties or f-
5."expropriation" shall mean nationalisation or confiscation of
investments or seizure of or deprivation of any property of i-
nvestors by the relevant authorities of the relevant places w-
ithout proper compensation which causes damages arising there-
from to investors.
6."freely convertible currencies" shall mean any currency that
is widely used to make payments for international transactions
and widely traded in the international principal exchange mar-
Scope of Application of the Present Agreement
1.The benefits of this Agreement shall apply only in cases where
the investment by the investors of one relevant place in the
other relevant place has been specifically approved in writing
and/or registered, as the case may require, by the relevant a-
uthority(ies), and upon such conditions as it (they) deem(s)
fit for the purposes of this Agreement.
2. This Article shall apply to all investments made in the rele-
vant places before or after the entry into force of this Agr-
Promotion and Protection of Investments
1.Each Contracting Party shall, having regard to the plans and
policies of its relevant place, encourage and facilitate the
investment of capital in its relevant place by the investors
of the other relevant place.
2.Investments of investors of one Contracting Party in the rele-
vant place of the other Contracting Party shall enjoy the most
constant protection and security under the law in the relevant
place of the latter Contracting Party.
Treatment of Investment
1.Each Contracting Party shall seek and obtain approval from the
authorities of its relevant place to the effect that investme-
nts by investors of the other relevant place and the returns
therefrom shall receive treatment which is fair and equitable
and not less favourable than that accorded to investments by
investors of any third party.
2.All the provisions of this Agreement relating to the granting
of treatment not less favourable than that accorded to the in-
vestors of any third party shall be granted only on a recipro-
cal basis.
The provisions of this Agreement relating to the granting of tr-
eatment not less favourable than that accorded to the investors
of any third party shall not be construed so as to oblige the a-
uthority of either relevant place to extend to the investors of
the other relevant place the benefit of any treatment, preferen-
ce or privilege which may be extended by the former relevant pl-
ace by virtue of:
(a) the formation or extension of a customs union or a free tra-
de area or a common external tariff area or a monetary union
or a regional association for economic cooperation; or
(b) the adoption of an agreement designed to lead to the format-
ion or extension of such a union or area within a reasonable
length of time; or
(c) any arrangement with a third party or parties in the same g-
eographical region designed to promote regional cooperation
in the economic, social, labour, industrial or monetary fie-
lds within the framework of specific projects; or
(d) the granting to a particular investor of the status of a "p-
romoted person" under the law of either relevant place; or
(e) any international agreement or arrangement, or any domestic
legislation, relating wholly or mainly to taxation.
Expropriation and Compensation for Losses
Each Contracting Party shall seek and obtain approval from the
authorities of its relevant place to the effect that:
(a) In any case where investments of an investor from either re-
levant place are subject, directly or indirectly, to any me-
asure of expropriation, the investor concerned shall be acc-
orded in the other relevant place fair and equitable treatm-
ent on a non-discriminatory basis in relation to any such m-
easure. No such measure shall be taken except for public pu-
rposes and against payment of compensation. Such compensati-
on shall be adequate, effectively realisable, made without
delay and freely transferable in freely convertible currenc-
(b) The legality of any expropriation and the amount and method
of payment of compensation shall be subject to review by due
process of law.
2.Where investments of an investor of either relevant place in
the other relevant place suffer loss owing to war or other ar-
med conflict, revolution, a state of emergency, revolt, insur-
rection or riot in the other relevant place, the investor con-
cerned shall be accorded treatment, as regards restitution, i-
ndemnification, compensation or other settlement, not less fa-
vourable than would be accorded in the same circumstances to
an investor of any third Party.
Transfers of Investments and Returns
The investors of either relevant place shall be guaranteed the
free transfer of the capital of and the returns from their inve-
stments, subject to the right of the other relevant place to ex-
ercise equitably and in good faith powers conferred by its laws
and regulations, without undue delay in freely convertible curr-
encies at the market rate of exchange prevailing on the date of
the transfer.
1.If the authority of either relevant place or an agency design-
ated by it makes payment to an investor under a guarantee cov-
ering non-commercial risks which it has given in respect of a-
ny investment, returns, and/or any part thereof in the other
relevant place, the authority of the latter relevant place sh-
all recognise:
(a) the assignment, whether under law or pursuant to a legal tr-
ansaction, of any right or claim from such an investor to t-
he authority of the former relevant place or its designated
agency; and
(b) that the authority of the former relevant place or its desi-
gnated agency is entitled by virtue of subrogation to exerc-
ise the rights and enforce the claims of such an investor.
2.The authority of the former relevant place or its designated
agency shall, accordingly, be entitled to assert, if it so de-
sires, any such right or claim to the same extent as its pred-
ecessor in title.
3.If the authority of the former relevant place acquires amounts
in the lawful currency of the other relevant place or credits
thereof by virtue of an assignment under subparagraph(a) of p-
aragraph 1 of this Article, such amounts and credits shall be
freely available to the authority of the former relevant place
for the purpose of meeting its expenditure in the latter rele-
vant place.
Settlement of Disputes between the Contracting Parties
1.Any dispute between the Contracting Parties concerning the in-
terpretation or application of this Agreement shall, if possi-
ble, be settled through consultation or negotiation.
2.If a dispute between the Contracting Parties cannot thus be s-
ettled within six months, it shall at the request of either C-
ontracting Party be submitted to an arbitral tribunal on such
terms and conditions as the Contracting Parties may agree.
Disputes Relating to the Investments
Any dispute between the relevant authorities of one Contracting
Party and the investor of the other Contracting Party in connec-
tion with the investment, shall, as far as possible, be settled
amicably through negotiation between the parties to the dispute.
If the dispute cannot thus be settled within six months from the
beginning of the negotiations, it shall, at the request of eith-
er party to the dispute, be submitted for settlement to an ad h-
oc arbitral tribunal, if so agreed by both parties to the dispu-
Entry into Force, Duration and Termination
This Agreement shall enter into force on the date of its signat-
ure. It shall remain in force for an initial period of ten years
. It shall thereafter continue to be in force indefinitely, sub-
ject to the right of either Contracting Party to terminate it by
twelve months' prior notice in writing to the other Contracting
Party, which notice may be given at any time after the expiry of
the ninth year. However, with respect to investments approved in
writing and/or registered, as the case may require, prior to the
date of termination of this Agreement, the provisions of all of
the other Articles of this Agreement shall continue to be effec-
tive for a period of ten years from such date of termination.
IN WITNESS WHEREOF, the undersigned, being duly authorized, have
signed this Agreement.
DONE in duplicate, at Taipei, on this thirtieth day of April A.D
. 1996, in the English language.

[Signed] [Signed]