Article 1
THE ASSOCIATION OF EAST ASIAN RELATIONS AND THE INTERCHANGE
ASSOCIATION (hereinafter referred to as “ both Sides ” ),
having regard to paragraphs 3(1) and 3(7) of the Arrangement
between the Association of East Asian Relations and the
Interchange Association for the Establishment of the Respective
Overseas Offices of 26 December 1972, shall cooperate with each
other in order to obtain necessary consent from the relevant
authorities with regard to the matters as contained in Articles
2 through 26 below.

Article 2
For the purposes of this Arrangement,
(1) The term “ investment ” means every kind of asset owned or
controlled, directly or indirectly, by an investor, which
has the characteristics of an investment, including:
(a) an enterprise and a branch of an enterprise;
(b) shares, stocks or other forms of equity participation in an
enterprise, including rights derived therefrom;
(c) bonds, debentures, loans and other forms of debt, including
rights derived therefrom;
(d) rights under contracts, including turnkey, construction,
management, production or revenue-sharing contracts;
(e) claims to money and to any performance under contract
having a financial value;
(f) intellectual property rights, including copyrights and
related rights, patent rights and rights relating to
utility models, trademarks, industrial designs,
layout-designs of integrated circuits, new varieties of
plants, trade names, indications of source or geographical
indications and undisclosed information;
(g) rights conferred pursuant to laws and regulations or
contracts such as concessions, licenses, authorizations and
permits, including those for the exploration and
exploitation of natural resources; and
(h) any other tangible and intangible, movable and immovable
property, and any related property rights, such as leases,
mortgages, liens and pledges.
An investment includes the amounts yielded by investments,
in particular, profit, interest, capital gains, dividends,
royalties and fees. A change in the form in which assets are
invested does not affect their character as investments.
(2) The term “ investor ” means the following natural person
and enterprise that seeks to make, is making, or has made
investments in the Area of the other Side.
(a) With respect to the Interchange Association:
(i) a natural person having the nationality of Japan; and
(ii) an enterprise which is a legal person or any other entity
duly constituted or organized under the applicable laws
and regulations in Japan, whether for profit or not, and
whether private or not, including any corporation, trust,
partnership, sole proprietorship, joint venture,
association, organization or company.
(b) With respect to the Association of East Asian Relations:
(ii) a natural person having the citizenship of Taiwan; and
(iii) an enterprise which is a legal person or any other
entity duly constituted or organized under the
applicable laws and regulations in Taiwan, whether for
profit or not, and whether private or not, including any
corporation, trust, partnership, sole proprietorship,
joint venture, association, organization or company.
(3) The term “ investment activities ” means establishment,
acquisition, expansion, operation, management, maintenance,
use, enjoyment and sale or other disposal of investments.
(4) The term “Area” means:
(a) with respect to the Interchange Association, Japan; and
(b) with respect to the Association of East Asian Relations,
Taiwan.
(5) The term “ existing ” means being in effect on the date of
entry into force of this Arrangement.
(6) The term “ freely usable currency ” means freely usable
currency as defined under the Articles of Agreement of the
International Monetary Fund.
(7) The term “ the WTO Agreement ” means the Marrakesh
Agreement Establishing the World Trade Organization, done at
Marrakesh, April 15, 1994.

Article 3
1. Investors of either Side and their investments shall within
the Area of the other Side be accorded treatment no less
favorable than the treatment accorded in like circumstances
to investors of the other Side and to their investments with
respect to investment activities.
2. Notwithstanding paragraph 1, it is understood that special
formalities may be prescribed in connection with investment
activities of investors of the other Side, provided that such
special formalities do not impair the substance of the
treatments which both Sides consider under this Arrangement
to be accorded to such investors.

Article 4
1. Investors of either Side and their investments shall within
the Area of the other Side be accorded treatment no less
favorable than the treatment accorded in like circumstances
to investors of any other countries or regions and to their
investments with respect to investment activities.
2. For greater certainty, the treatment referred to in paragraph
1 does not include treatment accorded to investors of any
other countries or regions and to their investments in regard
to dispute settlement mechanisms that are contained in
international treaties or agreements.

Article 5
1. Investments of investors of either Side shall within the Area
of the other Side be accorded treatment in accordance with
international law, including fair and equitable treatment and
full protection and security.
2. The operation, management, maintenance, use, enjoyment, and
sale or other disposal of investments of investors of either
Side shall within the Area of the other Side not be impaired
in any way by arbitrary measures.
3. Any obligation which the authorities in the Area of either
Side may have entered into with regard to investments and
investment activities of investors of the other Side shall be
observed.

Article 6
Investors of either Side shall within the Area of the other Side
be accorded treatment no less favorable than the treatment
accorded in like circumstances to investors of the other Side or
investors of any other countries or regions with respect to
access to the courts of justice and administrative tribunals and
agencies in all degrees of jurisdiction, both in pursuit and in
defense of such investors ’ rights.

Article 7
1. Any of the following requirements shall not be imposed or
enforced within the Area of either Side, as a condition for
investment activities of an investor of the other Side:
(a) to export a given level or percentage of goods or services;
(b) to achieve a given level or percentage of local content;
(c) to purchase, use or accord a preference to goods produced
or services provided in the Area of that Side, or to
purchase goods or services from natural or legal persons or
any other entity in the Area of that Side;
(d) to relate in any way the volume or value of imports to the
volume or value of exports or to the amount of foreign
exchange inflows associated with investments of that
investor;
(e) to restrict sales of goods or services in the Area that
investments of that investor produce or provide by relating
such sales in any way to the volume or value of its exports
or foreign exchange earnings;
(f) to restrict the exportation or sale for export;
(g) to appoint, as executives, managers or members of boards of
directors, individuals of any particular nationality or
citizenship;
(h) to transfer technology, a production process or other
proprietary knowledge to a natural or legal person or any
other entity in the Area of that Side, except when the
requirement:
(i) is imposed or enforced by a court, administrative tribunal
or competition authority to remedy an alleged violation of
competition laws; or
(ii) concerns the transfer of intellectual property rights
which is undertaken in a manner not inconsistent with the
Agreement on Trade-Related Aspects of Intellectual
Property Rights in Annex 1C to the WTO Agreement
(hereinafter referred to as “ the TRIPS Agreement ” );
(i) to locate the headquarters of that investor for a specific
region or the world market in the Area of that Side;
(j) to hire a given number or percentage of employees with any
particular nationality or citizenship;
(k) to achieve a given level or value of research and
development in the Area of that Side; or
(l) to supply one or more of the goods that the investor
produces or the services that the investor provides to a
specific region or the world market, exclusively from the
Area of that Side.
2. Notwithstanding Paragraph 1, it is understood that, in
connection with investment activities of an investor of
either Side, the receipt or continued receipt of an advantage
may be conditioned on compliance with any of the requirements
set forth in subparagraphs 1(g) through (l).

Article 8
1. It is understood that Articles 3, 4 and 7 do not cover:
(a) any existing non-conforming measure that is maintained by
the following, as set out in the Schedule of each Side in
Annex I:
(i) the central authorities;
(ii) a prefecture of Japan; or
(iii) a municipality, city, or county of Taiwan;
(b) any existing non-conforming measure that is maintained by a
local authority other than referred to in sub-paragraphs
(a)(ii) and (a)(iii) above;
(c) the continuation or prompt renewal of any non-conforming
measure referred to in subparagraphs (a) and (b); or
(d) an amendment or modification to any non-conforming measure
referred to in subparagraphs (a) and (b), provided that the
amendment or modification does not decrease the conformity
of the measure as it existed immediately before the
amendment or modification with Articles 3, 4 and 7.
2. It is understood that Articles 3, 4 and 7 do not cover any
measure adopted or maintained with respect to sectors,
sub-sectors or activities set out in the Schedule of each
Side in Annex II.
3. In the Area of either Side, under any measure adopted after
the date of entry into force of this Arrangement and covered
by the relevant Schedule in Annex II, an investor of the
other Side shall not be required to sell or otherwise dispose
of its investments that exist in the Area of the former Side
wherein the measure is adopted at the time the measure
becomes effective, by reason that the investor is the
investor of the other Side.
4. Either Side shall, in cases where an amendment or a
modification is made to any existing non-conforming measure
set out in its Schedule in Annex I or where any new or more
restrictive measure is adopted with respect to sectors,
sub-sectors, or activities set out in its Schedule in Annex
II after the date of entry into force of this Arrangement,
prior to the implementation of the amendment or modification
or the new or more restrictive measure, or in exceptional
circumstances, as soon as possible thereafter:
(a) notify the other Side of detailed information on such
amendment or modification, or such measure; and
(b) hold, upon request by the other Side, consultations in
good-faith with that other Side with a view to achieving
mutual satisfaction.
5. Where appropriate, efforts shall be taken in the Area of
either Side to reduce or eliminate the reservations specified
in the relevant Schedules in Annexes I and II respectively.
6. It is understood that Articles 3, 4 and 7 do not cover any
measure covered by the exceptions to, or derogations from,
obligations under Articles 3 and 4 of the TRIPS Agreement, as
specifically provided in Articles 3 through 5 of the TRIPS
Agreement.
7. It is understood that Articles 3, 4 and 7 do not cover any
measure adopted or maintained in the Area of either Side with
respect to:
(a) government procurement;
(b) subsidies or grants provided by the authorities or an
enterprise owned or controlled by the authorities in the
Area of either Side, including loans, guarantees and
insurance supported by the authorities.

Article 9
1. The laws, regulations, administrative procedures and
administrative rulings and judicial decisions of general
application in the Area of either Side shall be promptly
published, or otherwise made publicly available.
2. Either Side shall, upon request by the other Side, promptly
respond to specific questions and provide information on
matters set out in paragraph 1, including that relating to
contract which the authorities in the Area of that Side enter
into with regard to investment.
3. Paragraphs 1 and 2 shall not be construed so as to oblige
either Side to disclose confidential information, the
disclosure of which would impede law enforcement of the
authorities in the Area of either Side or otherwise be
contrary to the public interest, or which would prejudice
privacy or legitimate commercial interests.

Article 10
Except in cases of emergency or of purely minor nature, a
reasonable opportunity shall be provided for comments by the
public in accordance with the laws and regulations in the Area
of either Side before the adoption, amendment or repeal of
regulations of general application that affect any matter
covered by this Arrangement ．

Article 11
Where a natural person of either Side applies for the entry,
sojourn and residence in the Area of the other Side for the
purpose of investment activities therein, a sympathetic
consideration shall be given to the application of such natural
person, in accordance with the applicable laws and regulations
in the Area of the other Side.

Article 12
1. Expropriation or any measure equivalent to expropriation
(hereinafter referred to as “ indirect expropriation ” )
shall not be taken with respect to investments of investors
of either Side, except:
(a) for a public purpose;
(b) in a non-discriminatory manner;
(c) upon payment of prompt, adequate and effective compensation
pursuant to paragraphs 4 through 6; and
(d) in accordance with due process of law and Article 5.
2. Indirect expropriation referred to in paragraph 1 refers to
an action or a series of actions by the authorities, which
has an effect equivalent to expropriation without formal
transfer of title or outright seizure.
3. The determination of whether an action or a series of actions
by the authorities of either Side, in a specific fact
situation, constitutes an indirect expropriation requires a
case-by-case, fact-based inquiry that considers, among other
factors:
(a) the economic impact of the action, although the fact that
such action by the authorities has an adverse effect on the
economic value of an investment, standing alone, does not
establish that an indirect expropriation has occurred;
(b) the extent to which the action interferes with distinct,
reasonable expectations arising out of investment;
(c) the character of the action; and
(d) the objectives of the action, including whether such action
is taken for legitimate public objectives, such as
protecting the public welfare, safety and health, and
protecting and preserving the environment.
4. The compensation shall be equivalent to the fair market value
of the expropriated investments at the time when the
expropriation was publicly announced or when the
expropriation occurred, whichever is the earlier. The fair
market value shall not reflect any change in value occurring
because the expropriation had become publicly known earlier.
5. The compensation shall be paid without delay and shall
include interest at a commercially reasonable rate, taking
into account the length of time until the time of payment. It
shall be effectively realizable, freely transferable and
shall be freely convertible into freely usable currencies, at
the market exchange rate prevailing on the date of
expropriation.
6. Without prejudice to the provisions of Article 17, the
investor affected by expropriation shall have a right of
access to the courts of justice or administrative tribunals
or agencies in the Area where the expropriation has taken
place to seek a prompt review of the investor ’ s case and
the amount of compensation in accordance with the principles
set out in this Article.

Article 13
1. Investors of either Side that have suffered within the Area
of the other Side loss or damage relating to their
investments due to armed conflict or a state of emergency
such as revolution, insurrection, disturbance or any other
similar event, shall be accorded treatment, as regards
restitution, indemnification, compensation or any other
settlement, that is no less favorable than that accorded to
the investors of the other Side or to investors of any other
countries or regions, whichever is more favorable to those
investors suffered.
2. Any payment as a means of settlement referred to in paragraph
1 shall be effectively realizable, freely transferable, and
freely convertible at the market exchange rate prevailing at
the time of payment into freely usable currencies.

Article 14
1. If any authority or its designated entity in the Area of
either Side makes a payment to any investor of that Side
under an indemnity, guarantee, or insurance contract,
pertaining to investments of such investor in the Area of the
other Side, the following shall be recognized:
(a) the assignment to such authority or entity of any right or
claim of the investor on account of which such payment is
made; and
(b) the right of such authority or entity to exercise by virtue
of subrogation any such right or claim to the same extent
as the original right or claim of the investor.
2. Payment to be made to any authority or entity in the Area of
either Side, by virtue of the assignment of a right or claim
and the assignment of a payment as provided for in paragraph
1, shall be made in accordance with the principles as set out
in the relevant provisions in Articles 12, 13 and 15.

Article 15
1. All transfers relating to investments in the Area of either
Side of an investor of the other Side shall be allowed to be
freely made into and out of the Area of that Side without
delay. Such transfers shall include, in particular, though
not exclusively:
(a) the initial capital and additional amounts to maintain or
increase investments;
(b) profits, interest, capital gains, dividends, royalties,
fees and other current incomes accruing from investments;
(c) payments made under a contract including loan payments in
connection with investments;
(d) proceeds of the total or partial sale or liquidation of
investments;
(e) earnings and remuneration of personnel engaged from the
Area of the other Side who works in connection with
investments in the Area of the former Side;
(f) payments made in accordance with Articles 12 and 13; and
(g) payments arising out of the settlement of a dispute under
Article 17.
2. Transfers shall be made without delay in freely usable
currencies at the market exchange rate prevailing on the date
of each transfer.
3. Notwithstanding paragraphs 1 and 2, it is understood that a
transfer may be delayed or prevented through equitable,
non-discriminatory and good-faith application of the laws and
regulations relating to:
(a) bankruptcy, insolvency or the protection of the rights of
creditors;
(b) issuing, trading or dealing in securities, futures, options
or derivatives;
(c) criminal or penal offences;
(d) reports or record keeping of transfers of currency or other
monetary instruments; or
(e) ensuring compliance with orders or judgments in
adjudicatory proceedings.

Article 16
Referring to Article 1, either Side shall accord sympathetic
consideration to, and shall afford adequate opportunity for
consultations regarding, such representations as the other Side
may make with respect to any matter affecting the
interpretation, application or implementation of this
Arrangement.

Article 17
1. For the purposes of this Article, an investment dispute is a
dispute between the authorities in the Area of either Side
and an investor of the other Side that has incurred loss or
damage with respect to investments and investment activities
of the investor in the Area of the former Side.
2. An investment dispute shall, as far as possible, be settled
amicably through consultations or negotiations between the
investor who is a party to an investment dispute (hereinafter
referred to in this Article as “ disputing investor ” )and
the authorities concerned in the Area of the other Side that
is a party to the investment dispute (hereinafter
collectively referred to in this Article as “ the disputing
parties ” ).
3. It is confirmed that nothing in this Article prevent a
disputing investor from seeking administrative or judicial
settlement within the Area of the other Side.
4. If an investment dispute cannot be settled through such
consultations or negotiations within three months from the
date on which the disputing investor requested in writing the
authorities concerned for consultations or negotiations, the
investment dispute, subject to the mutual consent between the
disputing parties, may be submitted to an international
conciliation or arbitration, including arbitration under the
Arbitration Rules of the United Nations Commission on
International Trade Law, arbitration under Rules of
Arbitration of the International Chamber of Commerce and any
arbitration in accordance with other arbitration rules agreed
upon by the disputing parties.
5. Either Side shall facilitate that the authorities concerned
in the Area of that Side consents to the submission of an
investment dispute by a disputing investor to a conciliation
or arbitration set forth in paragraph 4 chosen by the
disputing investor.
6. No investment disputes may be submitted to a conciliation or
arbitration set forth in paragraph 4, if more than three (3)
years have elapsed since the date on which the disputing
investor acquired or should have first acquired, whichever is
the earlier, the knowledge that the disputing investor had
incurred loss or damage with respect to its investments and
investment activities in the Area of the other Side.
7. (a) In the event that an investment dispute has been
submitted to courts of justice or administrative tribunals or
agencies or any other binding dispute settlement mechanism in
the Area of the other Side, any conciliation or arbitration
set forth in paragraph 4 can be sought only if the disputing
investor withdraws, in accordance with the laws and
regulations in the Area of the other Side, its claim from
such domestic remedies before the final decision is made
therein.
(b) In the event that an investment dispute has been
submitted to a conciliation or arbitration as set forth
in paragraph 4, the same investment dispute shall not be
brought to the courts of justice, administrative
tribunals or agencies, or any other binding dispute
settlement mechanism in the Area of the other Side.
8. In the event that, pursuant to paragraph 4, an investment
dispute has been submitted to an arbitration and that an
arbitral tribunal has been established:
(a) the arbitral tribunal shall decide the issues in dispute in
accordance with this Arrangement;
(b) unless the disputing parties agree otherwise, the
arbitration shall be held in the Area of either Side or a
country that is a party to the United Nations Convention on
the Recognition and Enforcement of Foreign Arbitral Awards,
done at New York, June 10, 1958 (hereinafter referred to in
this Article as “ the New York Convention ” );
(c) the decision or the award rendered by the arbitral tribunal
shall be binding upon the disputing parties, and the
decision or the award will be executed in accordance with
the applicable laws and regulations as well as relevant
international law concerning the execution which is in
force in the place where such execution is sought; and
(d) the remedy under the decision or the award rendered by the
arbitral tribunal shall be limited to monetary damages or
restitution of property.
9. The claim that is submitted to an arbitration pursuant to
paragraph 4 shall be considered to arise out of a commercial
relationship or transaction for purpose of Article 1 of New
York Convention with respect to recognition and enforcement
within the Area of either Side.
10. Where an investment dispute has been submitted to an
international conciliation or arbitration, both Sides shall,
to the extent possible, be informed of any relevant
information including the issues in the dispute, state of
play of the proceedings and other substantive and procedural
matters.
11. Either Side may, upon written notice to the disputing
parties, provide any relevant information or make
submissions on a question of interpretation of this
Arrangement, to the conciliation body or arbitral tribunal.

Article 18
1. It is understood that the following measures may be adopted
or enforced in the Area of either Side, to the extent that
such measures are not applied in a manner which would
constitute a means of arbitrary or unjustifiable
discrimination against the investor of the other Side, or a
disguised restriction on investments of the investor of the
other Side;
(a) measures necessary to protect human, animal or plant life
or health;
(b) measures necessary to protect public morals or to maintain
public order;
Note: The public order exception may be invoked only where
a genuine and sufficiently serious threat is posed to
one of the fundamental interests of society.
(a) measures necessary to secure compliance with the laws or
regulations which are not inconsistent with the provisions
of this Arrangement including those relating to:
(i) the prevention of deceptive and fraudulent practices or to
deal with the effects of a default on contract;
(ii) the protection of the privacy of the individual in
relation to the processing and dissemination of personal
data and the protection of confidentiality of personal
records and accounts; or
(iii) safety;
(b) measures considered to be necessary for the protection of
the essential security interests:
(i) taken in time of war, or armed conflict, or other
emergency; or
(ii) relating to the implementation of policies or
international agreements respecting the non-proliferation
of weapons; or
(c) measures taken with the aim of contributing to the efforts
under the United Nations Charter for the maintenance of
international peace and security.
2. In cases where any measure as referred to in paragraph 1 is
taken in the Area of either Side, that Side shall, prior to
the entry into force of the measure or as soon thereafter as
possible, provide the other Side with information regarding
the following elements of the measure:
(a) sector and sub-sector or matter;
(b) any provisions of this Arrangement affected by the measure;
(c) legal source of the measure;
(d) succinct description of the measure; and
(e) purpose of the measure.

Article 19
1. It is understood that, in either Side, measures not
conforming with Article 3 relating to cross-border capital
transactions and Article 15 may be adopted or maintained:
(a) in the event of serious balance-of-payments and external
financial difficulties or threat thereof within the Area of
that Side; or
(b) in cases where, in exceptional circumstances, movements of
capital cause or threaten to cause serious difficulties for
macroeconomic management, in particular, monetary and
exchange rate policies in the Area of that Side.
2. Measures referred to in paragraph 1:
(a) shall be consistent with the Articles of Agreement of the
International Monetary Fund;
(b) shall not exceed those necessary to deal with the
circumstances set out in paragraph 1;
(c) shall be temporary and shall be eliminated as soon as
conditions permit;
(d) shall be promptly notified to the other Side; and
(e) shall avoid unnecessary damages to the commercial, economic
and financial interests of the investors of the other Side.

Article 20
It is understood that measures may be taken in the Area of
either Side relating to financial services for prudential
reasons, including measures for the protection of investors,
depositors, policy holders or persons to whom a fiduciary duty
is owed by an enterprise supplying financial services, or to
ensure the integrity and stability of the financial system,
provided that such measures are not used as a means of
undermining the investment activities of an investor of the
other Side.

Article 21
1. In the Area of either Side, intellectual property rights
shall be protected adequately and effectively, and the
intellectual property protection system shall be administered
in an efficient and transparent manner. For this purpose,
both Sides shall promptly consult with each other at the
request of either Side, so that the factors which are
recognized as having adverse effects to investments of
investors may be removed.
2. It is understood that this Arrangement does not affect the
exercise of rights or the implementation of obligations under
multilateral agreements in respect of protection of
intellectual property rights in force in the Area of either
Side ．
3. Notwithstanding Article 4, it is understood that the
treatment accorded to investors of any other countries or
regions and to their investments in the Area of either Side
by virtue of multilateral agreements in respect of protection
of intellectual property rights may not be extended to
investors of the other Side and to their investments, when
such multilateral agreements are not in force in the Area of
the other Side.

Article 22
Nothing in this Arrangement covers taxation measures.

Article 23
1. Both Sides shall establish a Joint Committee (hereinafter
referred to as “ the Committee ” )with a view to
accomplishing the objectives of this Arrangement. The
functions of the Committee shall be:
(a) to discuss the implementation and operation of this
Arrangement;
(b) to discuss the exceptional measures maintained, amended,
modified or adopted in the Area of either Side as referred
to in paragraph 1 of Article 8, for the purpose of
contributing to the reduction or elimination of such
exceptional measures;
(c) to discuss the exceptional measures adopted or maintained
in the Area of either Side as referred to in paragraph 2 of
Article 8, for the purpose of encouraging favorable
conditions for investors; and
(d) to discuss any other investment-related matters concerning
this Arrangement.
2. The Committee may, as necessary, make appropriate decisions
or recommendations by consensus to both Sides for the more
effective functioning or the attainment of the objectives of
this Arrangement.
3. The Committee shall be composed of representatives of each
Side. The Committee may, upon mutual consent of both Sides,
invite representatives of relevant entities with the
necessary expertise relevant to the issues to be discussed,
and hold joint meetings with the business sector.
4. The Committee shall determine its own rules of procedure to
carry out its functions.
5. The Committee may establish sub-committees and delegate
specific tasks to such sub-committees.
6. The Committee and the sub-committees established pursuant to
paragraph 5 shall meet upon the request of either Side.

Article 24
Either Side recognizes that it is inappropriate to encourage
investment by investors of the other Side and of any other
countries or regions by relaxing the health, safety or
environmental measures, or by lowering the labor standards.

Article 25
1. It is understood that the benefits of this Arrangement may be
denied by either Side to an investor of the other Side that
is an enterprise of the other Side and to its investments, if
the enterprise is owned or controlled by an investor of any
other country or region and the authorities in the Area of
the denying Side adopts or maintains measures with respect to
the other country or region:
(a) that prohibit transactions with the enterprise or that
would be violated or circumvented if the benefits were
accorded to the enterprise or to its investments; or
(b) that prohibit or restrict investment in accordance with the
existing laws and regulations in the Area of the denying
Side.
2. It is understood that the benefits of this Arrangement may be
denied by either Side to an investor of the other Side that
is an enterprise of the other Side and to its investments, if
that enterprise is owned or controlled by an investor of any
other country or region and that enterprise has no
substantial business activities in the Area of the other
Side.
Note 1: For the purposes of this Article, unless otherwise
stipulated in the existing laws and regulations
referred to in sub-paragraph 1(b), an enterprise is:
(a) “owned” by an investor if more than fifty (50)
percent of the equity interest in it is owned by the
investor; and
(b) “controlled” by an investor if the investor has
the power to name a majority of its directors or
otherwise to legally direct its actions.
Note 2: Either Side, when there arises a change in conditions
for the denial of benefits as referred to in
paragraphs 1 and 2, shall notify the other Side of
the change in advance. In that event, both Sides
shall consult with each other with a view to
reviewing and amending, if necessary, this Article.

Article 26
1. This Arrangement shall enter into force on the date that both
Sides inform each other that respective procedures have been
completed. It shall remain in force for a period of ten years
after its entry into force and shall continue in force unless
terminated as provided in paragraph 6 of this Article.
2. This Arrangement also covers all investments of investors of
either Side acquired in the Area of the other Side in
accordance with the applicable laws and regulations in that
Area prior to the entry into force of this Arrangement.
3. It is understood that claims arising out of events which
occurred or had been settled prior to its entry into force
shall be put outside the scope of this Arrangement.
4. The Annexes to this Arrangement shall form an integral part
of this Arrangement.
5. Either Side may at any time request consultations with the
other Side for the purpose of amending this Arrangement.
6. Either Side may, by giving one year ’ s advance notice in
writing to the other Side, terminate this Arrangement.

This Arrangement has been made in the English language. In
witness whereof, the representative of the Association of East
Asian Relations and the representative of the Interchange
Association, signed this Arrangement in Taipei, on September 22,
2011.


FOR THE ASSOCIATION OF EAST FOR THE INTERCHANGE ASSOCIATION:
ASIAN RELATIONS:

Chairman Chairman
R.T.Peng Mitsuo Ohashi