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tate of national emergency, riot or terrorism shall be no less faorable than nationals or companies of such other party, or nationls or companies of a third country, whichever is more favorable.

ARTICLE VI-TRANSFERS (PANAMA TREATY)

Article VI defines the obligations of each party with respect to ermitting free transfers of funds related to investments.

This provision appears as article V in Poland treaty. However, in A protocol to the treaty, the free transfer of profits is phased-in hrough 1995.

ARTICLE VII—SETTLEMENT OF LEGAL INVESTMENT DISPUTES BETWEEN ONE PARTY AND A NATIONAL OR COMPANY OF THE OTHER PARTY (PANAMA TREATY)

Article VII defines the meaning of investment disputes for purposes of the treaty. It also outlines procedures for settlement of investment disputes, including settlement by conciliation or binding arbitration. This article specifically exempts issues related to the J.S. Export-Import Bank and other official credits, guarantees, and nsurance from the application of this article.

This provision appears as article IX (and article XI with respect to the exemption of official transactions from coverage) in the Poland treaty.

ARTICLE VIII-SETTLEMENT OF DISPUTES BETWEEN THE PARTIES CONCERNING INTERPRETATION OR APPLICATION OF THE TREATIES

(PANAMA TREATY)

Article VIII establishes the procedures for settlement of disputes concerning the interpretation and application of provisions of the treaty between treaty parties. It also establishes a mechanism for either party to request consultations concerning the interpretation or application of the treaty and to resolve any disputes related thereto. Article VIII specifically exempts issues related to the U.S. Export-Import Bank and other official credits, guarantees, and insurance from the application of this article.

This provision appears as article X (and article XI with respect to the exemption of official transactions from coverage) in the Poland treaty.

ARTICLE VIII-EXCHANGE OF INFORMATION AND TRANSPARENCY

(POLAND TREATY)

Article VIII acknowledges the desirability of facilitating the collection and exchange of nonconfidential information relating to investments and commercial activities. It also provides for such information to be publicly available as well as any laws, regulations or administrative practices or procedures relevant to such activities. This provision is not contained in the Panama treaty.

ARTICLE IX-RESERVATION OF RIGHTS (PANAMA TREATY)

Article IX preserves the laws, regulations, and administrative practices and procedures of both parties, notwithstanding the treaty.

This provision appears as article XII in the Poland treaty.

ARTICLE X-MEASURES NOT PRECLUDED BY THE TREATY

(PANAMA TREATY)

Article X reserves the right of each party to take all measures necessary for the maintenance of public order, fulfillment of its existing international obligations, and protection of its own security interests.

This provision is incorporated into article XII of the Poland treaty.

ARTICLE XI-TAXATION (PANAMA TREATY)

Article XI limits the scope of the treaty with respect to taxation matters.

This provision is not included in the Poland treaty.

ARTICLE XII—APPLICATION OF TREATIES TO POLITICAL OR ADMINISTRATIVE SUBDIVISIONS OF THE PARTIES (PANAMA TREATY)

Article XII provides for the application of the treaty to the parties' political or administrative subdivisions.

This provision appears as article XIII in the Poland treaty.

ARTICLE XIII-ENTRY INTO FORCE AND DURATION AND TERMINATION (PANAMA TREATY)

Article XIII provides for the entry into force of the treaty 30 days after the exchange of instruments of ratification; for it to remain in force for 10 years before either party can terminate; and for investments undertaken prior to termination to be afforded protections equivalent to the treaty protections for an additional 10

years.

This provision appears as article XIV in the Poland treaty. Annex

The annex provides, in accordance with article II, of the treaties, the sectors which each party exempts or limits from national treatment with respect to investments of the other party.

PROTOCOL (POLAND TREATY)

The protocol to the Polish treaty specifies the phase-in formula for the free transfer of profits by 1995. The protocol also includes two exchanges of letters (1) dealing with designation of a Deputy President of the Polish Agency for Foreign Investments to assist U.S. investors and (2) with the conduct of tourism and travel related activities by nationals of the parties.

ANNEX 1 (POLAND TREATY)

Annex 1 of the treaty details what the Polish Government de fines as adequate and effective protection of patents.

ANNEX 2 (POLAND TREATY)

Annex 2 of the treaty provides for the protection of integrated circuit layout designs and defines what the Polish Government means by "protection."

ANNEX 3 (POLAND TREATY)

Annex 3 of the treaty provides for adequate and effective protecion for proprietary information and defines what is meant by such protection.

EXCHANGE OF LETTERS (POLAND TREATY)

A final exchange of letters clarifies the provisions of article II of the treaty relating to entry of investments by nationals of the other party.

RESOLUTIONS OF RATIFICATION

PANAMA

Resolved, (two-thirds of the Senators present concurring therein), That the Senate advise and consent to ratification of the Treaty between the United States of America and the Republic of Panama Concerning the Treatment and Protection of Investments, with agreed minutes, signed at Washington, October 27, 1982 (Treaty Doc. 99-14).

POLAND

Resolved, (two-thirds of the Senators present concurring therein), That the Senate advise and consent to ratification of the Treaty between the United States of America and the Republic of Poland Concerning Business and Economic Relations with Protocol and Four Related Exchanges of Letters, signed March 21, 1990, at Washington (Treaty Doc. 101-18).

2d Session

SENATE

101-35

NOMINATION OF GENERAL MICHAEL J. DUGAN, U.S. AIR FORCE, TO BE GENERAL ON THE RETIRED LIST

OCTOBER 27, 1990.-Ordered to be printed

Mr. NUNN, from the Committee on Armed Services,
submitted the following

REPORT

The Committee on Armed Services, having had under consideration the nomination of General Michael J. Dugan, 091-28-2234, United States Air Force, for appointment to the grade of general on the retired list, reports favorably thereon and recommends the nomination be confirmed by the Senate.

COMMITTEE ACTION

On October 12, 1990, the Senate received from President Bush the nomination of General Michael J. Dugan, United States Air Force, for appointment to the grade of general on the retired list pursuant to the provisions of title 10 United States Code, section 1370. Nominations of military officers to retire in the grade of three or four stars must be confirmed by the Senate. On October 27, 1990, the Committee voted unanimously to report the nomination favorably with the recommendation that the nomination be confirmed by the Senate.

FACTORS CONSIDERED BY THE COMMITTEE WITH REGARD TO THE RETIREMENT OF GENERAL DUGAN IN THE GRADE OF GENERAL General Dugan is retiring because he was relieved from his position as Chief of Staff of the United States Air Force by Secretary of Defense Cheney on September 17, 1990. The reason given by the Secretary of Defense for his action was that General Dugan displayed poor judgment in publicly discussing sensitive matters involving the employment of forces in Operation Desert Shield.

The Committee recognizes the prerogative of the Secretary of Defense to relieve General Dugan. The Committee also recognizes the prerogative of the President to nominate General Dugan for retirement in the grade of general. As indicated in the summary of Gen

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