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International Centre for the Settlement of Investment Disputes (ICSID): MTD Equity SDN. BHD. and MTD Chile S.A. V. Republic of Chile*

Published online by Cambridge University Press:  27 February 2017

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Type
Judicial and Similar Proceedings
Information
International Legal Materials , Volume 44 , Issue 1 , January 2005 , pp. 91 - 137
Copyright
Copyright © American Society of International Law 2005

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Footnotes

*

Document provided to the ILM office by a Corresponding Editor.

References

1 “Dato”’ is a Malaysian title of honor.

2 Memorial, para. 13.

3 Ibid., paras. 14-15.

4 Ibid., para. 16.

5 Ibid., para. 13.

6 Ibid., paras. 20-22.

7 Ibid., para. 23.

8 Ibid., paras. 25-26.

9 Ibid., para. 27.

10 Ibid., para. 28.

11 Ibid., para. 29.

12 Ibid., para. 30.

13 Counter-Memorial, para. 24.

14 Memorial, para. 30.

15 Ibid., para. 31.

16 Ibid., para. 32.

17 Ibid., para. 33.

18 Ibid., paras. 35 and 36.

19 Exhibit 14 to the Memorial at 2.

20 Ibid., para. 43.

21 Ibid., para. 43.

22 Ibid., para. 44.

23 Ibid.

24 Ibid.

25 Memorial, para. 39.

26 Ibid., para. 45.

27 Ibid., para. 46.

28 Ibid., para. 50.

29 Ibid., para. 51.

30 Ibid., para. 54.

31 Ibid., para. 54.

32 Ibid., para. 55.

33 Ibid., paras. 56-57.

34 Ibid., para. 58.

35 Ibid., para. 60.

36 Ibid., para. 66.

37 Ibid., para. 61.

38 Ibid., para. 63.

39 Ibid., para. 62.

40 Ibid., para. 63.

41 Ibid., para. 64.

42 Ibid, para. 66

43 Ibid., para. 67.

44 Ibid., paras. 70-71.

45 Ibid., para. 69.

46 Ibid., para. 72.

47 Ibid., paras. 74-75.

48 Ibid., para. 77.

49 Ibid., para. 75.

50 Ibid., para. 80.

51 Ibid., para. 81.

52 Ibid., para. 40.

53 Ibid., paras. 82 and 84.

54 Rejoinder, para. 126 and footnote 61.

55 Decree Law 600, the Foreign Investment Law of the Republic of Chile.

56 Counter-Memorial, paras. 1 and 2.

57 Article 2(1).

58 Article l(b).

59 CMS Gas Transmission Company v. The Republic of Argentina. Case No. ARB/01/8. Decision on Jurisdiction, para. 27.

60 Opinion of Judge Steven Schwebel, para. 23. Witness Statement submitted with the Memorial.

61 Ibid.

62 Article 3(1): “Investments made by investors of either Contracting Party in the territory of the other Contracting Party shall receive treatment which is fair and equitable, and not less favourable than that accorded to investments made by investors of any third State.“

63 The Concise Oxford Dictionary of Current English, fifth edition.

64 Article 2(2): “Investments of investors of either Contracting Party shall at all time be accorded fair and equitable treatment and shall enjoy full protection and security in the territory of the other Contracting Party.“

65 Técnicas Medioambientales TECMED S.A. v. The United Mexican States, ICSID Case No. ARB(AF)00/2, award dated May 29, 2003, para. 154. See also Waste Management, Inc. v. United Mexican Status, ICSID Case No. ARB(AF)/00/3, para. 98.

66 Memorial, para. 102.

67 Ibid., para. 103.

68 Counter-Memorial, paras. 25-27'.

69 Ibid., para. 27.

70 Ibid., paras. 48-96.

71 Ibid., paras. 31-32.

72 Ibid., para. 129 quoting expert Feliú's opinion.

73 Ibid., para. 131.

74 Ibid., para. 133.

75 Rejoinder, para. 37.

76 Ibid., paras. 40-41.

77 Ibid., para. 47.

78 Ibid., para. 50.

79 Counter-Memorial, paras. 134-137. See also Rejoinder para. 68.

80 Reply, para. 4.

81 Ibid., para. 18.

82. Ibid., para. 7.

83 Ibid., para. 8.

84 Ibid., para. 9.

85 Ibid., para. 28.

86 Ibid., para. 12.

87 Ibid., paras. 31-34.

88 Ibid., para. 36.

89 Ibid., para. 41.

90 Ibid., para. 42.

91 Ibid., para. 49.

92 Ibid., para. 43.

93 Ibid., para. 44.

94 Ibid., para. 46.

95 Ibid., para. 58.

96 Ibid., para. 70.

97 Ibid., para. 71.

98 This modification of the PMRS permits Zonas de Desarrollo Urbano Condicionado in the area South of Santiago that includes Pirque.

99 Reply, para. 72.

100 Ibid., para. 84.

101 Ibid., para. 85.

102 Ibid., para. 118.

103 Rejoinder, paras. 5-7.

104 Ibid., para. 9.

105 Ibid., para. 27.

106 Ibid., para. 30.

107 Ibid., para. 36.

108 Ibid., para. 69.

109 Ibid., para. 83.

110 Ibid.

111 Rejoinder, para. 75.

112 Ibid., para. 93.

113 Ibid.

114 Ibid., para. 95.

115 Contraloría General de la República.

116 Rejoinder, para. 96.

117 Ibid., paras. 99-100.

118 Ibid., para. 101.

119 Ibid., para. 105.

120 Counter-Memorial, para. 25.

121 Ibid., para. 27.

122 Ibid.

123 Ibid.

124 Counter-Memorial, para. 59.

125 Ibid., para. 8.

126 Ibid., para. 9.

127 Ibid., paras. 9 and 11.

128 Ibid., para. 29.

129 Ibid.

130 ICSID Case No. ARB/93/1, 36 I.L.M. 1531, at 1553 (1997).

131 Counter-Memorial, para. 109.

132 Robert Azinian et al. v. The United Mexican States, ICSID (AF) Case N. ARB (AF)97/2, ICSID REV. —Foreign INV. L.J. 538 (1999).

133 Counter-Memorial, para. 111.

134 Rejoinder, para. 14.

135 Ibid., paras. 24-25.

136 Counter-Memorial, para. 20.

137 Ibid., para. 22.

138 Ibid., para. 23.

139 “the Tribunal must emphasize that Bilateral Investment Treaties are not insurance policies against bad business judgments.” Emilio Agustín Maffezini v. The Kingdom of Spain, ICSID Case No. ARB/97/7 para. 69. Reply, para. 104.

141 Memorial, para. 109.

142 Ibid., para. 110.

143 Ibid.

144 Ibid., para. 111.

145 Reply, para. 117.

146 Rejoinder, para. 126.

147 Counter-Memorial, para. 124.

148 Reply, para. 105.

149 Ibid., para. 107.

150 Ibid., para. 108.

151 Ibid., para. 109.

152 Memorial, para. 110.

153 Memorial, para. 115.

154 Reply, para. 115.

155 Rejoinder, paras. 5-7.

156 Ibid., para. 108.

157 Ibid., paras. 110-111.

158 Counter-Memorial, para. 153.

159 Ibid., para. 154.

160 Memorial, para. 118.

161 Ibid., para. 119.

162 Ibid., para. 120.

163 Counter-Memorial, para. 143.

164 Ibid., para. 144.

165 Ibid., para. 145.

166 Ibid., paras. 147-149.

167 Ibid., para. 150.

168 Ibid., para. 151.

169 Rejoinder, para. 130.

170 Environmental Techniques TECMED S.A. v. the Mexican United States, ICSID Case No. ARB(AF)/00/2, Decision of May 29,2003.

171 Rejoinder, paras. 131-132.

172 Memorial, para. 127.

173 Ibid., para. 124.

174 “covert or incidental interference with the use of property which has the effect of depriving the owner, in whole or in significant part, of the use or reasonably-to-be-expected economic benefit of property even if not necessarily to the obvious benefit of the host state.” (Metalclad Corp. v. United Mexican States, ICSID Case No. ARB(AF)/97/l, Award, 30 August 2000, 103, 16 ICSID Rev.- FILJ 165 (2001)).

175 “De facto expropriation or indirect expropriation, i.e. measures that do not involve an overt taking but that effectively neutralize the benefit of property of the foreign owner, are subject to expropriation claims. This is undisputed under international law.” (CME Czech Republic B.V. (The Netherlands) v. Czech Republic, Partial Award, 13 September 2001, 604 available at http://www.cnts.cz/ doc 10/en/pdf/cme-cr-eng.pdf (citing Sacerdoti, J., Bilateral Treaties and Multilateral Instruments on Investment Protection, 1997 Recueil des Cours 382 (1998)).

176 Biloune and Marine Drive Complex Ltd v. Ghana Investments Centre and the Government of Ghana, 95 I.L.R. 183 (1994).

177 Memorial, para. 126.

178 Counter-Memorial, para. 114 and Rejoinder, para. 10.

179 Counter-Memorial, para. 115.

180 Ibid.

181 Ibid., para. 118.

182 Reply, para. 123.

183 Reply, footnote 35 at pages 54-55.

184 Rejoinder, para. 142.

185 Counter-Memorial, para. 144.

186 Memorial, para. 129.

187 Ibid., para. 130.

188 Counter-Memorial, para. 165.

189 Ibid., para. 167.

190 Ibid., para. 168.

191 Ibid., para. 169.

192 Ibid., para. 172.

193 Ibid., para. 173 and Rejoinder, para. 153.

194 Middle East Cement Shipping and Handling Co. S.A. v. Arab Republic of Egypt, ICSID CASE No. ARB/99/6, Award, 12 April 2002, paras. 153-154. Quoted in para. 178 of the Counter Memorial.

195 Ibid., para. 178.

196 Ibid., para. 183.

197 The statutory interest rate applied by courts in Chile.

198 Counter-Memorial, para. 184.

199 Ibid., paras. 179, 180 and 182.

200 Ibid., paras. 185-189.

201 Ibid., para. 191.

202 Reply, para. 127.

203 Ibid. para. 130.

204 Ibid., para. 131.

205 Ibid., paras. 132-135.

206 Ibid., para. 139.

207 Ibid., para. 148.

208 Ibid., para. 157.

209 Ibid., para. 158.

210 Ibid., para. 159.

211 Ibid., para. 162.

212 Ibid., para. 163.

213 Commissioned by the Claimants.

214 Reply, para. 163.

215 Palma Kitzing is the firm contracted by Banco Sud Americano.

216 Ibid., para. 164.

217 Ibid., para. 166.

218 Ibid., para. 169.

219 Ibid., para. 147.

220 Ibid.

221 Ibid., paras. 150-151.

222 Ibid., paras. 176-177.

223 Counter-Memorial, para. 173.

224 Quoted in Reply, para. 127.

225 Middle East Cement, para. 154.

226 For purposes of this calculation, the Tribunal has used the US dollar two-year swap rate of May 6, 2004 for a two-year swap effective May 21, 2004 published by Bloomberg. The two-year swap rate represents an interest rate at which semiannual cash flows may be discounted until the maturity of the swap. There are no Libor rates for period of more than one year.

227 Counter-Memorial, para. 147.

228 Compañía de Desarrollo de Santa Elena, S.A. v. Republic of Costa Rica, ICSID Case No. ARB/96/1, Final Award, 17 February 2000, para. 104.