October 11, 2007
H.E. Mr. Orlando Sol?rzano Delgadillo
Minister of Development, Industry and Trade
Republic of Nicaragua
Your office

Dear Minister,
I am pleased to acknowledge your letter of October 4, 2007,
which reads as follows:
"It is my pleasure to refer to the discussions between the
delegations of the Republic of Nicaragua and the Republic of
China (Taiwan) in the course of the negotiations related to
Protocol for the Addition and Amendment to Chapter 10
(Investment) of the Free Trade Agreement between the Republic of
Nicaragua and the Republic of China (Taiwan), on which we
decided as follows:
1. The denunciation and termination of the Agreement between the
Republic of Nicaragua and the Republic of China (Taiwan)
about Investment Guarantees (from now on "The Bilateral
Investment Agreement"), signed in Managua on 29th July 1992
extended through Note No. MRE/DGSTAJI/406/06/02, for a period
of ten years on January 8th 2003.
2. To subscribe a Protocol for the Amendment of Chapter 10
(Investment) of the Free Trade Agreement signed in Taipei
City, Republic of China (Taiwan) on June 16th 2006, between
our Countries (from now on FTA), in which it establishes that
all the investments made by an investor of a Party in the
territory of the other Party, after the entry in force of the
FTA, shall be governed according to the provisions contained
in chapter 10 (Investment) of the FTA.
Any covered investment that exist prior to the entry in force of
the FTA, or any dispute arising with regards to such investment,
shall be governed to the election of the investor by the
Bilateral Investment Agreement or Chapter 10 (Investment) of the
FTA for a term of ten years counted from the date of termination
of the Bilateral Investment Agreement. After the expiration of
said term, all investments shall be governed according to
Chapter 10 (Investment) of the FTA.
For greater certainty, an investor, either on his behalf or on
the behalf of an enterprise, cannot submit simultaneously or
subsequently the same claim to both Investor-State Dispute
Resolution Mechanism in the Bilateral Investment Agreement and
Chapter 10 (Investment) of the FTA. The election of one or the
other mechanism will be definite and exclusive.
For purposes of the FTA, the term "covered investment", means an
investment that was made in accordance with the provisions of
Article II of the Bilateral Investment Agreements referred to
above, and was therefore a protected investment under such
Bilateral Investment Agreement.
Also I have the honor to propose that this letter and its
confirmation letter in answer constitute an agreement between
our two Governments, which will enter in force by the time of
the entry in force of the FTA and will be an integral part of
it."
I have the honor to accept your proposal on behalf of my
Government and to confirm that your letter and this reply shall
constitute an agreement between our two Governments, which shall
enter into force on the date of entry into force of the
Agreement.

Sincerely,

Steve Ruey-Long Chen
Minister of Economic Affairs