The Government of the Republic of China and the Government of
the Republic of Guatemala, hereinafter referred to as the "Cont-
racting Parties",

Desiring to promote greater economic cooperation for the recipr-
ocal benefits of both Contracting Parties,

Intending to create favorable conditions for investments, that
will stimulate economic and technological development in the te-
rritories of the Contracting Parties, and increase the producti-
on of investors of each Contracting Party in the territory of
the other, and

Recognizing that the promotion and protection of investments,
through the present Agreement, will be conducive to the stimula-
tion of business initiative and to the development of economic
cooperation between them,

Have agreed as follows:

ARTICLE 1. DEFINITIONS

For the purposes of the present Agreement:

1."Investment" means: any kind of asset, in goods or rights, ow-
ned by an investor of one Contracting Party in the territory
of the other Contracting Party in accordance with the latter's
laws and, in particular, though not exclusively, includes:
a) Movable and immovable property and any other related rights;
b) Shares of stock, documents of title and debentures of compan-
ies or any other forms of participation in a company;
c) Credits or claims that have an economic value and that are
directly related to an investment;
d) Intellectual property rights according to the legislation of
the Contracting Parties;
e) Rights conferred by law or under contract, to undertake any
economic and commercial activities, including any rights to
search for, cultivate, extract or exploit natural resources.

Any change in the form of an investment shall not affect its ch-
aracter as an investment.

Investments in areas restricted by the Constitution, laws and
regulations of the Contracting Party receiving the investment
are excluded, among them, those activities reserved for nationa-
ls of each Contracting Party. The above restriction or reservat-
ion shall not be discriminatory between investors from the other
Contracting Party and investors from any third States.

It will be considered that the Government of the receiving Cont-
racting Party has given it's approval, when that Government gra-
nts to an investor from the other Contracting Party commercial
licenses, patents, or any other related documents required to
initiate operations.

3."Returns" means: all amounts yielded by an investment, as ref-
erred to in paragraph 1 of this article and in particular, th-
ough not exclusively, includes profits, interests, capital ga-
ins, dividends, royalties, and fees.

3. "Investor" means:
a) Any natural persons possessing the nationality of one of the
Contracting Parties according to its legislation. and that
make investments, as referred to in paragraph 1 of this arti-
cle;
b) Any legal persons, duly incorporated or constituted in accor-
dance with the laws of one of the Contracting Parties, and
that make investments, as referred to in paragraph 1 of this
article;
4. "Territory" means:
a) For the Republic of China: The territory, including the terr-
itorial sea and any maritime area situated beyond the territ-
orial sea, over which the Republic of China may exercise sov-
ereignty rights or jurisdiction.
b) For the Republic of Guatemala: The land and waters and air
space and the marine and submarine zones over which the State
exercises sovereignty in accordance with the Constitution of
the Republic of Guatemala and international law.

ARTICLE 2. PROMOTION AND PROTECTION
1.Each Contracting Party shall encourage and create favorable
conditions in its territory for investments of investors of
the other Contracting Party, according to its Constitution,
laws and regulations.
2.Each Contracting Party shall promote, to the extent possible,
the investments referred to in paragraph 1, and shall at all
times be accorded fair and equitable treatment; and, it shall
provide, in accordance with its laws and regulations, all nec-
essary permits related to such investments as well as all aut-
horizations required to perform the license and technical, co-
mmercial or administrative assistance contracts.
3.Each Contracting Party shall protect the investments of inves-
tors of the other Contracting Party in its territory, and sha-
ll eliminate all obstacles and prejudices, arbitrary or discr-
iminatory measures suffered by these investments, and will ab-
stain itself from incorporating any administrative measures
that might affect these investments.
Both returns of the investments, and the reinvestments shall
enjoy the same protection established for the investments.
4.All investments approved by either Contracting Party shall be
covered under this Agreement.
5.The investments made in the territory of any of the Contracti-
ng Parties, before the entry into force of this Agreement, sh-
all be covered by the protection established in it, at the re-
quest of the interested investor.
Nevertheless, this Agreement shall not apply to disputes which
arose prior to its entry into force.

ARTICLE 3. NATIONAL AND MOST FAVORED NATION TREATMENT.
1.In accordance with its laws and regulations, each Contracting
Party shall grant investments made by investors of the other
Contracting Party in the formers territory treatment no less
favorable than that granted to investments of its own investo-
rs, or from any third State.
2.Nothing in this article shall be construed so as to oblige a
Contracting Party to extend to investments of investors of the
other Contracting Party advantages resulting from any existing
or future Association or participation in a free trade area,
customs union, common market, economic and monetary union or
any other similar institutions of economic integration.
3.Nothing in this article shall be construed so as to oblige a
Contracting Party to extend to investments of investors of the
other Contracting Party deductions,fiscal exemptions or any
other similar advantages resulting from double taxation agree-
ments or any other agreement regarding tax matters concluded
between one Contracting Party and any third State.

ARTICLE 4. EXPROPRIATION AND COMPENSATION
1.Investments of investors of either Contracting Party shall en-
joy full protection and security in accordance with the legis-
lation of the Contracting Party in which the investment is ma-
de.
2.Investments of investors of either Contracting Party in the
territory of the other Contracting Party shall not be nationa-
lized, expropriated, or subjected to measures having an equiv-
alent effect, except in cases when any such measures have been
adopted for public purpose, in accordance with the Constituti-
on and due process of law, on a non discriminatory basis.
The Contracting Party that adopts any such measures, shall be
obliged to pay, according to its laws and regulations, a prom-
pt, adequate and effective compensation. The compensation sha-
ll amount to the fair market price of the
investment expropriated immediately before expropriation or
impending expropriation became public knowledge, whichever was
earlier. It shall include interest from the date of disposses-
sion of the expropriated property until the date of payment.
Before the expropriation, nationalization or measures having
an equivalent effect takes place, the Contracting Party making
the expropriation shall take into, consideration measures to
make a satisfactory compensation to investors of the other Co-
ntracting Party.
The investor affected shall have a right, under the law of the
Contracting Party making the expropriation, to prompt review,
by a judicial or other independent authority of that Contract-
ing Party, of his or its case and of the valuation of his or
its investment in accordance with the principles set out in
this paragraph.
3.Investors of one Contracting Party whose investments in the
territory of the other Contracting Party suffer damages or lo-
sses owing to war or other armed conflicts, a state of nation-
al emergency, revolt, insurrection or riot in the territory of
the latter Contracting Party shall be accorded by the latter
Contracting Party treatment, as regards restitution, indemnif-
ication, compensation or other settlement, no less favorable
than that which the latter Contracting Party accords to its
own nationals or investors of any third State.

ARTICILE 5. TRANSFERS
1.Each Contracting Party shall guarantee investors of the other
Contracting Party, in accordance with its laws and regulations
, the unrestricted transfer of payments related to their inve-
stments. Such transfers shall include, in particular, though
not exclusively, the following:
a) Additional amounts needed to maintain, expand and develop the
Investment;
b) Returns;
c) Payments made according to the terms of a contract, among th-
em mortgages, repayments of loans related to an investment;
d) Cash derived from the partial or total sale or liquidation of
the investment;
e) The compensations referred to in article 4;
f) The payments resulting from a dispute settlement procedure.
2.Subject to the exchange regime in effect, transfers shall be
effected at the market rate of exchange applicable on the date
of transfer and shall be made without delay in any freely con-
vertible currency.

ARTICILE 6. SUBROGATION
lf a Contracting Party or its designated agency makes a payment
under an indemnity against non?commercial risks given in respect
of an investment in the territory of the other Contracting Party
, the latter Contracting Party shall recognize the assignment,
under the law of that country, of any right or claim from the
investor to the former Contracting Party, or its designated age-
ncy, as well as the entitlement by virtue of subrogation that
will entitle the former Contracting Party, or its designated ag-
ency, to assert any such right or claim to the same extent as
its predecessor. The Contracting Party that recognizes the subr-
ogation of the other Contracting Party or its designated agency
shall permit the correspondent transfers to the latter.

ARTICLE 7. SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING
PARTIES

1.Any dispute between the Contracting Parties concerning the in-
terpretation or application of this Agreement shall, to the
extent possible, be settled through diplomatic channels.
2.lf the dispute cannot thus be settled within a period of three
months from the commencement of consultations, it shall be su-
bmitted, upon written request of either Contracting Party, to
an arbitration tribunal.
3.The arbitration tribunal shall be constituted in the following
way: each Contracting Party shall appoint one member of the
tribunal, and those two members shall then select a national
of a third State as chairman of the tribunal. The members sha-
ll be appointed within two months, and the chairman within a
month, from the date the last member was appointed.
4.lf one of the Contracting Parties fai1s to appoint its member
of the tribunal within the period specified in paragraph 3,
the other Contracting Party may invite the Chairman of the co-
urt of arbitration of the International Chamber of Commerce (
the ICC) to make the necessary appointments, according to the
rules of the ICC then in effect.
5.In case that the appointed members of both Contracting Parties
could not reach an agreement upon the appointment of the chai-
rman of the tribunal, within the period of time established on
paragraph 3 of this article, any Contracting Party could requ-
est to follow the procedure established on paragraph 4.
6.The proceedings of the arbitration tribunal shall be conducted
in accordance with the Rules of Conciliation and Arbitration
of the ICC. The Contracting Parties shall establish the venue
in which the arbitral procedure will take place. In case that
the tribunal cannot reach agreement, within 7 days, on the ve-
nue where the arbitral procedure should take place, either Co-
ntrac ting Party can invite the Secretary General of the ICC
to make, within 7 days, a selection of the venue for the proc-
edure. In case that the Secretary General of the ICC cannot
make a decision, the City of London, capital city of the Unit-
ed Kingdom of Great Britain and Nothern Irland, will be immed-
iately established as the place for the procedure.
7.The arbitration tribunal shall reach its award by a majority
of votes. Such award shall be final and binding for both Cont-
racting Parties.
8.Each Contracting Party shall bear the cost of its own member
of the tribunal and of its representation in the arbitration
proceeding. The cost of the chairman and the remaining costs
shall be borne in equal parts by both Contracting Parties. The
arbitration tribunal may in its decision direct that a higher
proportion of costs shall be borne by one of the two Contract-
ing Parties.

ARTICLE 8. SETTLEMENT OF INVESTMENT DISPUTES BETWEEN ONE CONTR-
ACTING PARTY AND INVESTORS OF THE OTHER CONTRACTING PARTY

1.For the settlement of any investment dispute which may arise
between one Contracting Party and an investor of the other Co-
ntracting Party with respect to matters regulated by this Agr-
eement, an amicable settlement shall be conducted between such
parties to the dispute.
2.lf a dispute cannot be settled in compliance with paragraph 1
of this article,within 3 months from the date the above amica-
ble settlement is initiated, it shall be submitted to arbitra-
tion, upon written request of either party to the dispute, in
accordance with the Rules of Conciliation and Arbitration of
the International Chamber of Commerce then in effect.
3.The procedures established in paragraphs 3 to 8 of article 7
hereof shall be applicable to the arbitration conducted under
this article.

ARTICLE 9.ENTRY INTO FORCE, DURATION, AMENDMENT, AND TERMINATION

1.This Agreement shall enter into force one month after the date
when both Contracting Parties have notified each other, throu-
gh the diplomatic channels, of the completion of their applic-
able legal formalities required for the entry into force of
international agreements.
2.This Agreement shall remain in force for an initial period of
ten years, and shall continue thereafter unless one of the Co-
ntracting Parties notifies the other Contracting Party, with a
written notification one year in advance, of its intention to
terminate it. In such case, the termination shall become effe-
ctive one year after the notification has been received by the
other Contracting Party.
3.In respect of investments made prior to the termination of th-
is Agreement, the provisions contained in this Agreement shall
remain in force for an additional period of ten years from the
date of termination.
4.The Contracting Parties shall periodically consult with each
other, to improve the measures, application and interpretation
of this Agreement, and to make any amendment by exchange of
letters.
5.This Agreement shall remain in force, independent of the dipl-
omatic and consular relations between the Contracting Parties.
IN WITNESS WHEREOF, the undersigned, duly authorized, have sign-
ed this Agreement.
Done in triplicate at Guatemala City the twelve day of november,
1999 in the Spanish, Chinese and English languages, all three
texts being equally authoritative. In case of any divergence of
interpretation, the English text shall prevail.



For the Government of Andrew J. S. Wu
For the Government of Jose Guillermo Villacorta
the Republic of China Ambassador Extraordinary
the Republic of Guatemala Interim Minister of Economy
and Plenipotentiary