No.

29497

FEDERAL REPUBLIC OF GERMANY

and
BOLIVIA

Treaty concerning the promotion and mutual protection of

investments (with protocol). Signed at La Paz on
23 March 1987
Authentic texts : German and Spanish .
Registered by Germany on 28 January 1993 .

RÉPUBLIQUE FÉDÉRALE D'ALLEMAGNE

et
BOLIVIE

Traité relatif à l'encouragement et à la protection réciproque

des investissements (avec protocole) . Signé à La Paz le
23 mars 1987
Textes authentiques : allemand et espagnol.
Enregistré par l'Allemagne le 28 janvier 1993 .

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[TRANSLATION - TRADUCTION]

TREATY' BETWEEN THE FEDERAL REPUBLIC OF GERMANY

AND THE REPUBLIC OF BOLIVIA CONCERNING THE PRO-
MOTION AND MUTUAL PROTECTION OF INVESTMENTS

'Me Federal Republic of Germany and the Republic of Bolivia,

Desiring to intensify economic cooperation between the two States,
Intending to create favourable conditions for investments by nationals and
companies of either State in the territory of the other State, and
Recognizing that the promotion and contractual protection of such investments
are apt to stimulate private business initiative and to increase the prosperity of the
two nations,
Have agreed as follows :
Article 1
For the purpose of this Treaty :
(1) 'Me terra "investments" shall comprise every kind of asset, in particular :
(a) Movable and immovable property as well as any other rights in rem, such
as mortgages, liens and pledges ;
(b) Shares of companies and other kinds of interest ;
(c) Claims to money which has been used to create an economic value or daims
to any performance having an economic value ;
(d) Copyrights, industrial property rights, technical processes, trade marks,
trade names, know-how and goodwill ;
(e) Business concessions under public law, including concessions to search for,
extract and exploit natural resources .
Any alteration of the form in which assets are invested shall not affect their classifi-
cation as an investment .
(2) 'Me terra "returns" shall mean the amounts yielded by an investment for a
definite period as profit, dividends, interest, licence or other fées .
(3) 'Me terra "nationals" shall mean :
(a) In respect to the Federal Republic of Germany :
Germans within the meaning of the Basic Law of the Federal Republic of
Germany ;
(b) In respect of the Republic of Bolivia :
Bolivians within the meaning of the Political Constitution and other relevant
legal provisions in force in its territory .
1 Came into force on 9 November 1990, i.e ., one month after the exchange of the instruments of ratification, which
took place at Bonn on 9 October 1990, in accordance with article 14 (2) .
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(4) 'Me terra "companies" shall mean :

(a) In respect of the Federal Republic of Germany :
Any juridical perron as well as any commercial or other company or association
with or without legal personality having its seat in the German areas of applica-
tion of this Treaty, irrespective of whether or not its activities are directed at
profit;
(b) In respect of the Republic of Bolivia :
Any company, corporation and firm established in conformity with the legal
provisions in force in any part of its territory.

Article 2
(1) Each Contracting Party shall, in accordance with its legislation, permit
in its territory investments of capital by nationals or compagnies of the other Con-
tracting Party and promote such investments as far as possible . It shall in any case
accord such investments fair and equitable treatment .
(2) Neither Contracting Party shall, through arbitrary or discriminatory meas-
ures, prejudice the management, maintenance, use and enjoyment in its territory of
the investments of nationale or companies of the other Contracting Party.

Article 3
(1) Neither Contracting Party shall subject investments in its territory owned
or influenced by nationals or companies of the other Contracting Party to treatment
less favourable than it accords to investments of its own nationale or companies or
to investments of nationale or companies or any third State .
(2) Neither Contracting Party shall subject nationale or companies of the
other Contracting Party in its territory, insofar as their investment related activities
are concerned, to treatment less favourable than it accords to its own nationale and
companies or to nationals and companies of any third State.
(3) Such treatment shall not extend to privileges which either Contracting
Party accords to nationals or companies of third States on account of their member-
ship in or in association with a customs or economic union, a common market or a
free-trade area .
(4) 'Me treatment granted under this article shall not refer to privileges
granted by either Contracting Party to nationals or companies of third States by
virtue of a double taxation agreement of other agreements regarding matters of
taxation .

Article 4
(1) Investments by nationals or companies of either Contracting Party shall
enjoy full protection as well as security in the territory of the other Contracting
Party.
(2) Investments by nationals or companies of either Contracting Party shall
not be expropriated, nationalized, or subjected to any other measure the effects of
which would be tantamount to expropriation or nationalization in the territory of the
other Contracting Party, except for the public benefit and against compensation .
Compensation shall be equivalent to the value of the investment expropriated imme-
diately before the date of actual impending expropriation, nationalization or com-
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parable measure was publicly announced . The compensation shall be paid without
delay and shall carry the usual bank interest until the time of payment ; it shall be
actually realizable and freely transferable . Appropriate measures must be taken by
the time of expropriation, nationalization or comparable measure, at the latent, to
determine the amount of compensation and to pay it . The legality of any such expro-
priation, nationalization or comparable measure and the amount of compensation
shall be subject to review by due process of law .
(3) Nationals or companies of either Contracting Party whose investments
suffer losses in the territory of the other Contracting Party owing to war or other
armed conflict, revolution, a state of national emergency, or revolt, shall be accorded
by such other Contracting Party treatment no less favourable than that which that
Party accords to its own nationale or companies as regards restitution, indemnifica-
tion, compensation or other valuable consideration . Such payments shall be freely
transferable.
(4) Nationals or companies of either Contracting Party shall enjoy most-
favoured-nation treatment in the territory of the other Contracting Party in respect
of the matters provided for in this article .

Article 5
Each Contracting Party shall guarantee to the nationale or compagnies of the
other Contracting Party the free transfer of payments connected with an investment,
especially :
(a) Of the capital and additional amounts to maintain or increase the
investment ;
(b) Of the returns ;
(c) In repayment of bans ;
(d) Of licence and other fees for the rights defined in article 1, paragraph 1 (d) ;
(e) Of the proceeds from the sale of the whole or any part of the investment .

Article 6
If either Contracting Party makes payment to any of its nationale or companies
under a guarantee it has assumed in respect of an investment in the territory of the
other Contracting Party, the latter Contracting Party shall, without prejudice to the
rights of the former Contracting Party under article 10, recognize the assignment,
whether under a law or pursuant to a legal transaction, of any right or daim from
such national or company to the former Contracting Party . The latter Contracting
Party shall also recognize the subrogation of the former Contracting Party to any
such right or daim (assigned daims) which that Contracting Party shall be entitled
to assert to the came extent as its predecessor in title. As regards the transfer of
payments by virtue of such assignment, article 4, paragraphe 2 and 3, as well as
article 5 shall apply mutatis mutandis .

Article 7
(1) Transfers pursuant to article 4, paragraph 2 or 3, article 5, or article 6 shall
be made without delay at the rate in effect in each case .
(2) Such a rate shall coincide with the cross rate resulting from the exchange
rates which the International Monetary Fund would apply if, at the time of pay-
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ment, the currencies of the countries concerned were converted into special drawing
rights .

Article 8

(1) If the legislation of either Contracting Party or obligations under interna-

tional law existing at present or established hereafter between the Contracting Par-
ties in addition to this Treaty contain a regulation, whether general or specific, enti-
tling investments by nationals or companies of the other Contracting Party to a
treatment more favourable than is provided for by this Treaty, such regulation shall,
to the extent that it is more favourable, prevail over this Treaty .
(2) Each Contracting Party shall observe any other obligations it may have
entered into with regard to investments in its territory by nationals or companies of
the other Contracting Party .

Article 9

'Mis Treaty shall also apply to investments made prior to its entry into force by
nationale or companies of either Contracting Party in the territory of the other Con-
tracting Party consistent with the latter's legislation .

Article 10

(1) Disputes between the Contracting Parties concerning the interpretation or

application of this Treaty should as far as possible be settled by the Governments of
the two Contracting Parties .

(2) If a dispute cannot thus be settled, it shall upon the request of either Con-
tracting Party be submitted to an arbitral tribunal .
(3) Such arbitral tribunal shall be constituted ad hoc as follows : each Con-
tracting Party shall appoint one member and these two members shall agree upon a
national of a third State as their chairman to be appointed by the Governments of
the two Contracting Parties . Such members shall be appointed within two months,
and such chairman within three months from the date on which either Contracting
Party has informed the other Contracting Party that it intends to submit the dispute
to an arbitral tribunal.

(4) If the periods specified in paragraph 3 above have not been observed,
either Contracting Party may, in the absence of any other relevant arrangement,
invite the President of the International Court of Justice to make the necessary
appointments . If the President is a national of either Party or if he is otherwise
prevented from discharging the laid function, the Vice-President shall make the
necessary appointments . If the Vice-President is a national of either Contracting
Party of if he, too, is prevented from discharging the laid function, the member of
the Court next in seniority who is not a national of either Contracting Party shall
make the necessary appointments .
(5) 'Me arbitral tribunal shall reach its decisions by a majority of votes . Such
decisions shall be binding . Each Contracting Party shall bear the colt of its own
member and of its representatives in the arbitral proceedings ; the colt of the chair-
man and the remaining colts shall be borne in equal parts by the Contracting Parties .
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'Me arbitral tribunal may make a different regulation concerning costs . In all other
respects, the arbitral tribunal shall determine its own procedure .
(6) If both Contracting Parties are parties to the Convention of 18 March 1965
on the settlement of investment disputes between States and nationals of other
States,l the arbitral tribunal provided for above may, in consideration of the provi-
sions of article 27, paragraph 1, of the laid Convention, not be appealed to where
agreement has been reached between the national or company of one Contracting
Party and the other Contracting Party under article 25 of the Convention . 'Mis shall
not affect the possibility of appealing to such arbitral tribunal in the event that a
decision of the arbitral tribunal established under the laid Convention (article 27) is
not complied with or in the case of an assignment under a law or pursuant to a legal
transaction as provided for in article 6 of this Treaty .

Article 11
(1) Disputes between either Contracting Party and a national or company of
the other Contracting Party in connection with investments should as far as possible
be settled amicably between the parties to the dispute .
(2) If a dispute cannot be settled within six months from the date on which it
has been raised by either Party, it shall, upon the request of either party to the
dispute, be submitted to an arbitral tribunal . In such case, article 10, paragraphs 3
to 5, shall apply, mutatis mutadis, on the understanding that the parties to the dis-
pute shall appoint the members of the arbitral tribunal in accordance with article 10,
paragraph 3, and that, if the deadlines referred to in article 10, paragraph 3, are not
observed, either party to the dispute may, in the absence of other arrangements,
request the President of the Court of Arbitration of the Paris International Chamber
of Commerce to make the necessary appointments .
(3) If both Contracting Parties are parties to the Convention of 18 March 1965
on the settlement of investment disputes between States and nationals of other
States, any disputes between either Contracting Party and an investor, as referred
to in this article, shall be submitted, in accordance with the rules of the laid Con-
vention, to mediation and arbitration by the International Centre for Settlement of
Investment Disputes .

Article 12
'Mis Treaty shall remain in force even in case of conflict between the Con-
tracting Parties, without prejudice to the right to take provisional measures as
authorized by the general rules of international law. Measures of this kind shall be
abrogated, at the latest, when the conflict ends, irrespective of whether or not diplo-
matie relations exist between the Parties .

Article 13
With the exception of the provisions in paragraph 6 of the Protocol, which refer
to air transport, this Treaty shall also apply to Land Berlin, provided that the Gov-
ernment of the Federal Republic of Germany does not make a contrary declaration
to the Government of Bolivia within three months of the date of entry into force of
this Treaty.

1 United Nations, Treaty Series, vol . 575, p. 159 .

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Article 14
(1) 'Mis Treaty shall be ratified ; the instruments of ratification shall be
exchanged as soon as possible at Bonn .
(2) 'Mis Treaty shall enter into force one month from the date of the exchange
of the instruments of ratification . It shall remain in force for a period of 10 years and
shall be extended thereafter for an unlimited period unless denounced in writing by
either Contracting Party 12 months before its expiration . After 10 years, the Treaty
may be denounced at any time, with 12 months' prior notice .
(3) In respect of investments made prior to the date of termination of this
Treaty, articles 1 to 13 shall continue to be effective for a further period of 20 years
from the date of termination of this Treaty .
DONE at La Paz on 23 March 1987, in two originale in the German and Spanish
languages, both texts being equally authentic .

For the Government

of the Federal Republic of Germany :
H . SAUMWEBER
Ambassador
MANS KLEIN
Federal Minister for Economic Cooperation

For the Republic of Bolivia :

BEDREGAL
Minister for Foreign Affairs and Worship

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PROTOCOL

On signing the Treaty concerning the Promotion and Mutual Protection of

Investments concluded between the Federal Republic of Germany and the Republic
of Bolivia, the undersigned plenipotentiaries have, in addition, agreed on the fol-
lowing provisions which shall be regarded as an integral part of the laid Treaty :
(1) Ad article 1
(a) Returns from the investment, and, in the event of their reinvestment, the
returns therefrom, shall enjoy the came protection as the investment .
(b) Without prejudice to any other method of determining nationality, in par-
ticular, any perron in possession of a passport issued by the competent authorities
of the Contracting Party concerned shall be deemed to be a national of that Party .
(2) Ad article 2
(a) Investments made, in accordance with the laws and regulations of either
Contracting Party, within the area of application of the law of that Party by nationals
or companies of the other Contracting Party shall enjoy the full protection of this
Treaty.
(b) 'Mis Treaty shall apply also in exclusive economic maritime zones and
continental shelf areas, provided that the Contracting Party concerned is entitled
under international law to exercise rights of sovereignty or jurisdiction in these
zones .
(3) Ad article 3
(a) The following shall more particularly, though not exclusively, be deemed
"activity" within the meaning of article 3, paragraph 2 : the management, mainte-
nance, use and enjoyment of an investment . The following shall, in particular, be
deemed "treatment less favourable" within the meaning of article 3 : restricting the
purchase of raw or auxiliary materials, of energy or fuel or of means of production
or operation of any kind, impeding the marketing of products inside or outside the
country, as well as any other measures having similar effects . Measures that have to
be taken for reasons of public security and order, public health or morality shall not
be deemed "treatment less favourable" within the meaning of article 3 .
(b) The provisions of this article do not obligate a Contracting Party to extend
tax privileges, exemptions and relief accorded only to natural persons and compa-
nies resident in its territory in accordance with its tax laws also to natural persons
and companies resident in the territory of the other Contracting Party .
(c) 'Me Contracting Parties shall within the framework of their national legisla-
tion give sympathetic consideration to applications for the entry and sojourn of
persons of either Contracting Parties who wish to enter the territory of the other
Contracting Party in connection with an investment ; the came shall apply to nation-
als of either Contracting Party who in connection with an investment wish to enter
the territory of the other Contracting Party and sojourn there to take up employ-
ment . Application for work permits shall also be given sympathetic consideration .
(4) Ad article 4
A daim to compensation shall also exist when, as a result of State intervention
in the company in which the investment is made, its economic substance is severely
impaired.
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(5) Ad article 5
A transfer shall be deemed to have been made "without delay" within the
meaning of article 7, paragraph 1, if effected within such period as is normally re-
quired for the completion of transfer formalities . 'Me laid period, which may not in
any case exceed two months, shall begin at the time when the respective request is
transmitted .
(6) Whenever goods or perlons connected with an investment are to be trans-
ported, each Contracting Party shall neither exclude nor hinder transport enter-
prises of the other Contracting Party and shall issue permits as required to carry out
such transport . 'Mis shall include the transport of :
(a) Goods directly intended for an investment within the meaning of this Treaty
or acquired in the territory of either Contracting Party or of any third State by or on
behalf of an enterprise in which assets within the meaning of this Treaty are in-
vested ;
(b) Persons travelling in connection with an investment .
DONE at La Paz on 23 March 1987, in two originale in the German and Spanish
languages, both texts being equally authentic .

For the Government

of the Federal Republic of Germany :
H . SAUMWEBER
Ambassador
HANS KLEIN
Federal Minister for Economic Cooperation

For the Republic of Bolivia :

BEDREGAL
Minister for Foreign Affairs and Worship

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