TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC

OF POLAND CONCERNING BUSINESS AND ECONOMIC RELATIONS

Signed March 21, 1990; Entered into Force August 6, 1994

PREAMBLE

The United States of America and the Republic of Poland; (hereinafter referred to as
"the Parties");

Desiring to develop further the friendship between the American and Polish peoples;

Recognizing that the further development of business and economic ties can
contribute to a general strengthening of their relations;

Desiring to promote greater economic cooperation between them with respect to

investment by nationals and companies of one Party in the territory of the other Party;

Recognizing that agreement upon the treatment to be accorded such investment will
stimulate the flow of private capital and the economic development of the Parties;

Agreeing that fair and equitable treatment of investment is desirable in order to

maintain a stable framework for investment and maximum effective utilization of
economic resources;

Desiring to develop long-term business and economic cooperation based upon the
principles of sovereign equality and mutual benefits;

Recognizing that the development of business and economic ties can contribute to
the well-being of workers in both countries and promote respect for fundamental
worker rights;

Convinced that private enterprise operating within a free and open market offers the
best opportunities for raising living standards and the quality of life for the inhabitants
of the Parties; and

Recognizing the desire of the Republic of Poland to reduce the role of state
enterprises and privatize its economy;

Agree as follows:

ARTICLE I
Definitions

1. For the purposes of this Treaty,

(a) "company of a Party" means any kind of corporation, company, association, state
enterprise, or other organization, legally constituted under the laws and regulations of
a Party or a political subdivision thereof whether or not organized for pecuniary gain,
or privately or governmentally owned;

(b) "investment" means every kind of investment, in the territory of one Party owned
or controlled directly or indirectly by nationals or companies of the other party, and
includes:

(i) tangible and intangible property, including rights, such as mortgages, liens and
pledges;

(ii) a company or shares of stock, or other interests in a company or interests in the

assets thereof;

(iii) a claim to money or a claim to performance having economic value, and

associated with an investment;

(iv) intellectual property which includes, rights relating to: literary and artistic works,
including sound recordings, patent rights, industrial designs, semiconductor mask
works, trade secrets, and trademarks, service marks, and trade names; and

(v) any right conferred by law or contract, and any licenses and permits pursuant to
law;

(c) "national of a Party" means, a natural person who is a national of a Party under its
applicable law;

(d) "return" means an amount derived from or associated with an investment,

including profit; dividend; interest; capital gain; royalty payment; management,
technical assistance other fees; or returns in kind;

(e) "associated activities" are activities associated with an investment, such as the
organization, control, operation, maintenance and disposition of companies,
branches, agencies, offices, factories or other facilities for the conduct business; the
making, performance and enforcement of contracts; the acquisition, use, protection
and disposition of property of all kinds including intellectual property rights; the
borrowing of funds; the purchase and issuance of equity shares and other securities;
and the purchase of foreign exchange;

(f) "nondiscriminatory" treatment means treatment that is at least as favorable as the

better of national treatment or most-favored nation treatment;

(g) "national treatment" means treatment that is at least as favorable as the most
favorable treatment accorded by a Party to companies or nationals of that Party in
like circumstances;

(h) "most-favored nation treatment" means treatment that is at least as favorable as

that accorded by a Party to companies and nationals of third parties in like
circumstances;

(i) "commercial activity" means activities carried on by nationals or companies of a

Party related to the sale or purchase of goods and services and the granting of
franchises or rights under license, which are not investments or related activities; and
(j) "control" means having a substantial interest in or the ability to exercise substantial
influence over the management and operation of an investment, provided that such
an influence will not be deemed to exist solely as a result of a contractual relationship
for the provision of goods or services or the extension of commercial credits in
connection with such contracts.

2. Each Party reserves the right to deny to any company the advantages of this
Treaty if nationals of any third country control such company and, in the case of a
company of the other Party, that company has no substantial business activities in
the territory of the other Party or is controlled by nationals of a third country with
which the denying Party does not maintain normal economic relations.

3. Any alteration of the form in which assets are invested or reinvested undertaken in
accordance with the laws of the Party concerned, provided that the application of
such laws does not impair any rights conferred by this Treaty, shall not affect their
character as investment.

ARTICLE II
Treatment of Investment

1. Each Party shall permit, in accordance with its relevant laws and regulations, and
treat investment and associated activities on a nondiscriminatory basis, subject to the
right of each Party to make or maintain exceptions falling within one of the sectors or
matters listed in the Annex to this Treaty. Each Party agrees to notify the other Party
before or on the date of entry into force of this Treaty of all laws and regulations of
which it is aware concerning the sectors or matters listed in the Annex. Moreover,
each Party agrees to notify the other of any future exception with respect to the
sectors or matters listed in the Annex, and to limit such exceptions to a minimum.
Any future exceptions by either Party shall not apply to investment existing in that
sector or matter at the time the exception becomes effective. Except as stated
otherwise in the Annex, the treatment accorded pursuant to any exceptions shall not
be less favorable than that accorded in like situations to investments and associated
activities of nationals or companies of any third country, except with respect to
ownership of real property. Rights to engage in mining on the public domain shall be
dependent on reciprocity.

2. Subject to the laws relating to the entry and sojourn of aliens, nationals of either
Party and their families shall be permitted to enter and to remain in the territory of the
other Party for the purpose of establishing, developing, administering or advising on
the operation of an investment to which they, or a company of the first Party that
employs them, have committed or are in the process of committing a substantial
amount of capital or other resources.

3. Companies of a Party which are investments shall be permitted to engage

professional, technical, and managerial personnel of their choice, regardless of
nationality.

4. Neither Party shall impose, as a condition of establishment, expansion or

maintenance of investments, any performance requirements which require or enforce
commitments to export goods produced, or which specify that goods or services must
be purchased locally, or which impose any other similar requirements or measures.
5. The treatment accorded by the United States of America to investments and
associated activities under the provisions of this Article shall in any State, Territory or
possession of the United States of America be the treatment accorded therein to
companies legally constituted under the laws and regulations of any other State,
Territory or possession of the United States of America.

6. Investment shall at all times be accorded fair and equitable treatment, shall enjoy
full protection and security and shall in no case be accorded treatment less than that
required by international law. Neither Party shall in any way impair by arbitrary and
discriminatory measures the management, operation, maintenance, use, enjoyment,
acquisition, expansion or disposal of investments. Each Party shall observe any
obligation it may have entered into with regard to investments.

7. Each Party shall provide effective means of asserting claims and enforcing rights
with respect to investments under this Treaty and authorizations relating thereto, with
the exception of denials thereof, and investment agreements.

8. Subject to the right to make or maintain exceptions falling within one of the sectors
or matters listed in the Annex, each Party shall accord nondiscriminatory treatment to
nationals and companies of the other Party in the conduct of their investment and
associated activities with respect to:

(a) the granting of franchises or rights under licenses;

(b) the issuance of registrations, licenses, permits and other approvals necessary for
the conduct of commercial activity, which shall in any event be issued expeditiously;

(c) access to financial institutions and credit markets;

(d) access to their funds held in financial institutions;

(e) the importation and installation of equipment necessary for the normal conduct of
business affairs, including, but not limited to office equipment and automobiles, and
the export of any equipment and automobiles so imported;

(f) the dissemination of commercial information;

(g) the conduct of market studies;

(h) the appointment of commercial representatives, including agents, consultants and

distributors and their participation in trade fairs and promotion events;

(i) the marketing of goods and services, including through internal distribution and
marketing systems and by direct contract with individuals and companies;

(j) access to public utilities, public services and commercial rental space at
nondiscriminatory prices, if the prices are set or controlled by the government;

(k) access to raw materials, inputs and services of all types at nondiscriminatory
prices, if the prices are set or controlled by the government.
9. Subject to the right to make or maintain exceptions falling within one of the sectors
or matters listed in the Annex, for purposes of facilitating investment and associated
activities, each Party shall accord nondiscriminatory treatment to nationals and
companies of the other Party with respect to the sale, offering for sale and acquisition
of equity shares and other securities. With respect to acquisition of interests in any
governmentally-owned enterprise or organization undergoing privatization, the
Republic Poland shall provide most-favored nation treatment to nation and
companies of the United States.

ARTICLE III
Business Facilitation and Business Rights

1. Each Party will encourage the participation of its national and companies in trade
promotion events such as fairs, exhibition, missions and seminars held in the territory
of the other Party. Similarly, each Party will encourage nationals and companies of
the other Party to participate in trade promotion events in its territory. Subject to the
laws in force within their territories, the Parties agree to allow the import and re-
export on a duty-free basis of all articles for use in trade promotion events, provided
that such articles are not sold or otherwise transferred.

2. Subject to the right to make or maintain exceptions falling within one of the sectors
or matters listed in the Annex, for purposes of facilitating trade between the Republic
of Poland and the United States in goods and services, each Party shall accord non-
discriminatory treatment to nationals and companies of the other Party in the conduct
of their commercial activities with respect to:

(a) the granting of franchises or rights under licenses;

(b) the issuance of registrations, licenses, permits and other approvals necessary for
the conduct of commercial activity which shall in any event be issued expeditiously;

(c) access to financial institutions and credit markets;

(d) access to their funds held in financial institutions;

(e) the importation and installation of equipment necessary for the normal conduct of
business affairs, including, but not limited to office equipment and automobiles, and
the export of any equipment and automobiles so imported;

(f) the dissemination of commercial information;

(g) the conduct of market studies;

(h) the appointment of commercial representatives, including agents, consultants and

distributors and their participation ir trade fairs and promotion events;

(i) the marketing of goods and services, including through internal distribution and
marketing systems and by direct con tact with individuals and companies;

(j) access to public utilities, public services and commercia rental space at
nondiscriminatory prices, if the prices are sei or controlled by the government;
(k) access to raw materials, inputs and services of all types ai nondiscriminatory
prices, if the prices are set or controlled by the government.

3. Nationals and companies of each Party in the conduct of commercial activities

shall at all times be accorded fair and equitable treatment, shall enjoy full protection
and security and shall in no case be accorded treatment less than that required by
international law. Neither Party shall in any way impair by arbitrary and discriminatory
measures the conduct of commercial activities. Each Party shall observe any
obligation it may have entered into with regard to the conduct of commercial
activities.

4. Each Party agrees to notify the other Party before or on the date of entry into force
of this Treaty of all laws and regulations of which it is aware concerning the sectors or
matters listed in the Annex. Moreover, each Party agrees to notify the other of any
future exceptions with respect to the sectors or matters listed in the Annex, and to
limit such exceptions to a minimum. Any future exceptions by either Party shall not
apply to commercial activities conducted in that sector or matter at the time the
exception becomes effective. Except as stated otherwise in the Annex, the treatment
accorded pursuant to any exceptions shall not be less favorable than that accorded
in like situations to commercial activities of nationals or companies of any third
country.

5. Each Party shall provide effective means of asserting claims and enforcing rights
with respect to agreements in connection with the conduct of commercial activity.

6. The Parties endorse the use of arbitration, under internationally recognized rules,
for the settlement of commercial disputes between nationals and companies of the
Republic of Poland and nationals and companies of the United States. Neither Party
shall require that the place of any arbitration be in the United States or the Republic
of Poland.

7. Subject to the laws relating to the entry and sojourn of aliens, nationals of either
Party and their families shall be permitted to enter and to remain in the territory of the
other Party for the purpose of carrying on trade between the territory of the two
Parties and engaging in commercial activities.

8. The treatment accorded by the United States of America to nationals and

companies of the Republic of Poland under the provisions of this Article shall in any
State, Territory or possession of the United States of America be the treatment
accorded therein nationals and companies legally constituted under the laws and
regulations of any other State, Territory or possession of the United States of
America.

ARTICLE IV
Protection of Intellectual Property

The Parties shall provide adequate and effective protection and enforcement of
intellectual property rights. To establish such protection, each Party agrees, inter alia,
to:

-extend copyright protection to computer program as literary works;

-provide product as well as process patent protection for pharmaceuticals and
chemicals for a term at least equivalent to that provided to other patentable subject
matter;

-provide adequate and effective protection for integrated circuit layout design (mask
works);

-provide adequate and effective protection against unfair competition.

ARTICLE V
Transfers

1. Each Party shall permit all transfers related to an investment of commercial activity
to be made freely and without delay into and out of its territory. Such transfers
include:

(a) returns;

(b) compensation pursuant to Article VII

(c) payments arising out of an investment dispute or commercial dispute;

(d) payments made under a contract, including amortization of principal and accrued
interest payments made pursuant to a loan agreement;

(e) proceeds from the sale or liquidation of all or any part of an investment; and

(f) additional contributions to capital for the maintenance or development of an

investment. 2. Except as provided in Article VII paragraph 1, transfers shall be made
in a freely usable currency at the prevailing market rate of exchange for commercial
transactions on the date of transfer with respect to spot transactions in the currency
to be transferred.

3. Notwithstanding the provisions of paragraphs 1 and 2, either Party may maintain

laws and regulations (a) requiring reports of currency transfer; and (b) imposing
income taxes by such means as a withholding tax applicable to dividends or other
transfers. Furthermore, either Party may protect the rights of creditors, or ensure the
satisfaction of judgments in adjudicatory proceedings, through the equitable,
nondiscriminatory and good faith application of its law.

ARTICLE VI
Taxation

1. With respect to its tax policies, each Party should strive to accord fairness and
equity in the treatment of investment of, and commercial activity conducted by,
nationals and companies of the other Party.

2. Nevertheless, the provisions of this Treaty, and in particular Articles IX and X, shall
apply to matters of taxation only with respect to the following:

(a) expropriation, pursuant to Article VII;

(b) transfers, pursuant to Article V; or

(c) the observance and enforcement of terms of an investment agreement or

authorization as referred to in Article IX(l) (a) or (b), to the extent they are not subject
to the dispute settlement provisions of a convention for the avoidance of double
taxation between the two Parties, or have been raised under such settlement
provisions and are not resolved within a reasonable period of time.

ARTICLE VII
Compensation for Expropriation

1. Investments shall not be expropriated or nationalized either directly or indirectly

through measures tantamount to expropriation or nationalization ("expropriation")
except for a public purpose, in a nondiscriminatory manner, upon payment of prompt,
adequate and effective compensation, and in accordance with due process of law
and the general principles of treatment provided for in Article II (6). Compensation
shall be equivalent to the fair market value of the expropriated investment
immediately before the expropriatory action was taken or became publicly known,
whichever is earlier; be paid without delay; include interest at a commercially
reasonable rate, such as LIBOR plus an appropriate margin, from the date of
expropriation; be fully realizable; be freely transferable; and calculated on the basis
of the prevailing market rate of exchange for commercial transactions on the date of
expropriation.

2. A national or company of either Party that asserts that all or part of its investment
has been expropriated shall have a right to prompt review by the appropriate judicial
or administrative authorities of the other Party to determine whether any such
expropriation has occurred and, if so, whether such expropriation, and any
compensation therefor, conforms to the provisions of this Treaty and to principles of
international law.

3. Nationals or companies of either Party whose investments suffer losses in the

territory of the other Party owing to war or other armed conflict, revolution, state of
national emergency, insurrection, civil disturbance or other similar events shall be
accorded nondiscriminatory treatment by such other Party as regards any measures
it adopts in relation to such losses.

ARTICLE VIII
Exchange of Information and Transparency

1. Each Party acknowledges the desirability of facilitating the collection and

exchange of all non-confidential, non-proprietary information relating to investments
and commercial activities within its territory.

2. Each Party shall make publicly available all non-confidential, non-proprietary

information which may be useful in connection with investment and commercial
activities. In addition, each Party shall promptly make public all laws, regulations,
administrative practices and procedures, and adjudicatory decisions having general
application that pertain to or affect commercial activities or investments.
3. The Parties shall disseminate to their respective business communities such
information made available under paragraph 2 which will assist their nationals and
companies in pursuing the most expeditious and equitable settlement of any dispute
affecting them which may arise under this Treaty. Such information may be related to
timeliness of decisions and vindication of rights under the Treaty.

ARTICLE IX
Settlement of Disputes Between a Party and an Investor of the Other Party

1. For purposes of this Article, an investment dispute is defined as a dispute involving

(a) the interpretation or application of an investment agreement between a Party
(including any agency or instrumentality of such Party) and a national or company of
the other Party; (b) the interpretation or application of any investment authorization
granted by a Party's foreign investment authority to such national or company; or (c)
an alleged breach of any right conferred or created by this Treaty with respect to an
investment. A decision of a Party which denies entry if an investment shall not
constitute an investment dispute within the meaning of this Article.

2. In the event of an investment dispute between a Party and a national or company

of the other Party, the parties to the dispute shall initially seek to resolve the dispute
by consultation and negotiation, which may include the use of non-binding, third party
procedures. Each Party shall encourage its nationals and companies to resort to local
courts, especially for the resolution of disputes relating to administrative actions.
Subject to paragraph 3 of this Article, if the dispute cannot be resolved through
consultation and negotiation, the dispute shall be submitted for settlement in
accordance with previously agreed, applicable dispute-settlement procedures. Any
dispute-settlement procedures, including those relating to expropriation, specified in
the investment agreement shall remain binding and shall be enforceable in
accordance with the terms of the investment agreement, relevant provisions of
domestic laws and applicable international agreements regarding enforcement if
arbitral awards.

3. (a) At any time after six months from the date on which the dispute arose, the
national or company concerned may choose to consent in writing to the submission
of the dispute for settlement by conciliation or binding arbitration to the International
Centre for the Settlement of Investment Disputes ("Centre") or to the Additional
Facility of the Centre or pursuant to the Arbitration Rules of the United Nations
Commission on International Trade Law ("UNCITRAL") or pursuant to the arbitration
rules of any arbitral institution mutually agree between the parties to the dispute.
Once the national or company concerned has so consented, either party to the
dispute may institute such proceeding provided:

(i) The dispute has not been submitted by the national or company for resolution in
accordance with any applicable previously agreed dispute-settlement procedures;
and

(ii) the national or company concerned has not brought the dispute before the courts
of justice or administrative tribunals or agencies of competent jurisdiction of the Party
that is a party to the dispute.
If the parties disagree over whether conciliation or binding arbitration is the more
appropriate procedure to be employed, the opinion of the national or company
concerned shall prevail.

(b) Each Party hereby consents to the submission of an investment dispute for
settlement by conciliation or binding arbitration:

(i) To the Centre, in the event that the Republic of Poland becomes a party to the
Convention on the Settlement of Investment Disputes Between States and Nationals
of Other States done at Washington, March 18, 1965 ("Convention") and the
Regulations and Rules of the Centre, and to the Additional Facility of the Centre, and

(ii) to an arbitral tribunal established under the UNCITRAL Rules, as those Rules may
be modified by mutual agreement of the parties to the dispute, the appointing
authority referenced therein to be Secretary General of the Centre.

(c) Conciliation or arbitration of disputes under (b) (i) shall be done applying the
provisions of the Convention and the Regulations and Rules of the Centre, or of the
Additional Facility as the case may be.

(d) The place of any arbitration conducted under this Article shall be a country which
is a party to the 1958 United Nations Convention on the Recognition and
Enforcement of Foreign Arbitral Awards.

(e) Each Party undertakes to carry out without delay the provisions of any award
resulting from an arbitration held in accordance with this Article. Further, each Party
shall provide for the enforcement in its territory of such arbitral awards.

3. In any proceeding involving an investment dispute, a Party shall not assert, as

defense, counterclaim, right of set-off or otherwise, that the national or company
concerned has received or will receive, pursuant to an insurance or guarantee
contract, indemnification or other compensation for all or part of its alleged damages.
However, to the extent that a Party succeeds to the rights or claims of the national or
company concerned by reason of subrogation or assignment, the national or
company concerned shall not continue to pursue such rights and claims in its own
name unless authorized to do so on behalf of the subrogee or assignee.

5. In the event of an arbitration, for the purposes of this Article any company legally
constituted under the applicable laws and regulations of either Party or a political
subdivision thereof but that, immediately before the occurrence of the event or events
giving rise to the dispute, was an investment of nationals or companies of the other
Party, shall be treated as a national or company of such other Party, in accordance
with Article 25(2)(b) of the Convention.

ARTICLE X
Consultation and Settlement of Disputes Between the Parties

1. The Parties agree to consult promptly, on the request of either Party, to resolve
any disputes in connection with this Treaty, or to discuss any matter relating to the
interpretation or application of this Treaty.
2. Any dispute between the Parties concerning the interpretation or application of this
Treaty which is not resolved within six months through consultations or other
diplomatic channels, shall be submitted, upon the request of either Party, to an
arbitral tribunal for binding decision in accordance with this Treaty and the applicable
rules of international law. In the absence of an agreement by the Parties to the
contrary, the arbitration rules of the United Nations Commission on International
Trade Law (UNCITRAL), except to the extent modified by the Parties or by the
arbitrators, shall govern.

3. Within two months of receipt of a request, each Party shall appoint an arbitrator.
The two arbitrators shall select a third arbitrator as Chairman, who is a national of a
third State. The UNCITRAL Rules for appointing members of three member panels
shall apply mutatis mutandis to the appointment of the arbitral panel except that the
appointing authority referenced in those rules shall be the Secretary General of the
Centre.

4. Unless otherwise agreed, all submissions shall be made and all hearings shall be
completed within six months of the date of selection of the third arbitrator, and the
Tribunal shall render its decisions within two months of the date of the final
submissions or the date of the closing of the hearings, whichever is later.

5. Expenses incurred by the Chairman, the other arbitrators, and other costs of the
proceedings shall be paid for equally by the Parties. The Tribunal may, however, at
its discretion, direct that a high proportion of the costs be paid by one of the Parties.
Each Party shall bear the expense of its representation in the proceedings before the
arbitral tribunal.

ARTICLE XI
Disputes Not Covered by Articles IX and X

The provisions of Articles IX and X shall not apply to a dispute arising (a) under the
export credit, guarantee or insurance programs of the Export-Import Bank of the
United States or (b) under other official credit, guarantee or insurance arrangements
pursuant to which the Parties have agreed to other means of settling disputes.

ARTICLE XII
Reservation of Rights

1. This Treaty shall not derogate from:

(a) laws and regulations, administrative practices or procedures, or administrative or

adjudicators decisions of either Party;

(b) international legal obligations; or

(c) obligations assumed by either Party, including those contained in an investment

or commercial agreement or an investment authorization, that entitle commercial
activities, investments or associated activities to treatment more favorable than that
accorded by this Treaty in like situations.
2. The nondiscrimination and most-favored nation provisions of this Treaty shall not
apply to advantages accorded by either Party to nationals or companies of any third
country by virtue of:

(a) that Party's binding obligations that derive from full membership in a free trade
area or customs union or existing binding obligations under the Council of Mutual
Economic Assistance; or

(b) that Party's binding obligations under any multilateral international agreement
under the framework of the General Agreement on Tariffs and Trade entered into
subsequent to this Treaty.

3. This Treaty shall, not preclude the application by either Party of measures
necessary for the maintenance of public order, the fulfillment of its obligations with
respect to the maintenance or restoration of international peace or security, or the
protection of its own essential security interests.

4. This Treaty shall not preclude either Party from prescribing special formalities in
connection with the establishment of investments or the conduct of commercial
activities, but such formalities shall not impair the substance of any of the rights set
forth in this treaty.

5. This Treaty shall not preclude either Party from establishing qualifications for the
practice of professions.

ARTICLE XIII
Application to Political Subdivisions

This Treaty shall apply to the political subdivisions of the Parties.

ARTICLE XIV
Entry Into Force and Termination

1. This Treaty shall be ratified and shall enter into force on the thirtieth day following
the date of the exchange of instruments of ratification which shall take place in
Warsaw. It shall remain in force for a period of ten years and shall continue in force
unless terminated in accordance with paragraph 3 of this Article.

2. This Treaty shall apply to investments and associated activities and to commercial
activities existing at the time of entry into force as well as to investments made or
acquired and commercial activities undertaken while this Treaty is in force.

3. Either Party may, by giving one year's written notice to the other Party, terminate
this Treaty at the end of the initial ten year period or at any time thereafter.

4. With respect to investments made or acquired and commercial activities

undertaken prior to the date of notice of termination of this Treaty and to which this
Treaty otherwise applies, the provisions of all of the other Articles of this Treaty shall
thereafter continue to be effective for a further period of ten years from such date of
termination.
5. The Annex, Protocol and related letters exchanged this day on assistance to
investors, tourism and travel-related services, intellectual property, and entry of
United States investments shall form an integral part of the Treaty.

IN WITNESS WHEREOF, the respective plenipotentiaries have signed this Treaty.

DONE in duplicate at Washington on the twenty-first day of March, 1990 in the

English and Polish languages, both texts being equally authentic.

For the United States of America:

George Bush.

For the Republic of Poland:

Tadeusz Mazowiecki.

ANNEX

1. Consistent with Article II, paragraph 1, the United States reserves the right to make
or maintain limited exceptions in the sectors or matters it has indicated below:

air transportation; ocean and coastal shipping; banking; insurance; government

grants; government insurance and loan programs; energy and power production;
custom house brokers; ownership of real estate; ownership and operation of
broadcast or common carrier radio and television stations; ownership of shares in the
Communications Satellite Corporation; the provision of common carrier telephone
and telegraph services; the provision of submarine cable services; use of land and
natural resources;

2. Consistent with Article II, paragraphs 1 and 9, the United States shall accord
treatment in accordance with its laws and regulations with respect to primary
dealership in U.S. government securities; maritime related services; and the sale,
offering for sale and acquisition of equity shares and other securities and all services
and activities related thereto.

3. Consistent with Article III, paragraph 2, the United States reserves the right to
make or maintain limited exceptions in the sectors or matters noted in paragraph 1 of
this Annex.

4. Consistent with Article 11, paragraph 1, the Republic of Poland reserves the right
to make or maintain limited exceptions in the sectors or matters it has indicated
below:

air transportation; ocean and coastal shipping; banking; insurance; government

grants; government insurance and loan programs; energy and power production;
custom house brokers; ownership and use of real estate; ownership and operation of
broadcast or common carrier radio and television stations; the provision of postal,
telephone, telegraph and other telecommunications services; exploitation of natural
resources; commercial agency and broker activities performed for third parties;
railway transportation; dealership in securities; the sale, offering for sale and
acquisition of equity shares and other securities; maritime related services; publishing
and printing activities; lotteries and games of chance; public utilities; spirits and
alcoholic beverages; operation of ports and airports.

The Republic of Poland reaffirms its intention to eliminate the state monopoly status
of a number of sectors and matters listed above. As the process of privatization and
demonopolization progresses, the Republic of Poland intends to remove some of
these sectors or matters from the list of exceptions in this Annex. The Republic of
Poland will notify the Government of the United States the measures being taken in
fulfillment of the Republic of Poland takes note of the particular interest in the sectors
of telecommunications, publishing and printing, banking and other financial services
(including insurance).

5. Consistent with Article II, paragraph 8(c), the Republic of Poland shall accord the
treatment provided therein with respect to access to financial institutions and credit
markets only to (i) nationals of the United States legally resident in the territory of the
Republic of Poland; and (ii) companies incorporated in the republic of Poland which
are owned or controlled directly or indirectly by nationals or companies of the United
States. The Parties understand that these Limitations shall be eliminated upon the
introduction of the full convertibility of the zloty.

6. Consistent with Article III, paragraphs 2(c) and 3, the Republic of Poland shall
accord the treatment provided therein with respect to access to financial institutions,
credit markets and foreign exchange only to (i) nationals of the United States legally
resident in the territory of the Republic of Poland; and (ii) companies incorporated in
the Republic of Poland which are owned or controlled directly or indirectly by
nationals or companies of the United States. The Parties understand that these
limitations shall be eliminated immediately upon the introduction of the full
convertibility of the zloty.

7. During the period of transformation of Polish economic law but in no case beyond
December 31, 1992, the Republic of Poland may add to the list of sectors or matters
indicated in this Annex if needed in order to comply with changes in Polish law,
provided that any such modifications shall be kept to a minimum and shall not
significantly impair investment or commercial opportunities for nationals and
companies of the United States under this Treaty. Any modifications under this
paragraph shall not apply to investments and associated activities existing at the time
such modifications become effective.

PROTOCOL

1. The Republic of Poland agrees that nationals and companies of the United States
shall be free to select commercial agents of their choice and to agree upon
commission rates with such agents.

2. The Parties understand that with respect to transfers referred to in Article V,

paragraph 1 of the Treaty, the term "without delay" means that transfers should be
made in accordance with normal banking and commercial practices. The Parties
further understand that normal banking and commercial practices in the Republic of
Poland are generally governed by the National Bank of Poland. Under current
provisions issued by the Bank, companies which are investments can obtain foreign
exchange within three working days if such foreign exchange is obtained from a bank
lised to conduct foreign exchange transactions, and eight working days in all other
instances in connection with payments for imported goods and related services.

3. The Republic of Poland affirms its policy of ensuring that bank deposits held within
the territory of Poland receive a positive real rate of interest.

4. Notwithstanding the provisions of Article V, paragraph with regard to the Republic

of Poland the transfer of profits derived from an investment exceeding the amount
transferrable under Article 19, paragraph 1, of the Law of December 23, 1988 on
Economic Activity with the Participation of Foreign Parties shall be made according to
the following schedule:

As of 1st January 1992: 20 percent of the remaining profits gained in 1990-1991 and
not previously transferred.

As of lst January 1993: 35 percent of the remaining profits gained in 1990-1992 and
not previously transferred.

As of lst January 1993: 50 percent of the remaining profits gained in 1990-1993 and
not previously transferred.

As of lst January 1995: 80 percent of the remaining profits gained in 1990-1993 and
not previously transferred.

As of lst January 1996: 100 percent of the remaining profits gained in 1990-1995 and
not previously transferred, and 100 percent of profits gained thereafter.

If the Republic of Poland introduces full convertibility of its currency before lst
January 1996, transfers of profits shall be made without restrictions from the date of
introduction of full convertibility.

5. The Republic of Poland shall ensure that the opportunity exists to invest profits
which cannot be transferred in accordance with paragraph 3 of this Protocol in a bank
account that yields a positive real rate of interest.

DEPARTMENT OF COMMERCE,
Washington, DC, March 21, 1990.

Mr. DARIUSZ LEDWOROWSKI,

Undersecretary of State,
Ministry of Foreign Economic Relations,
Warsaw, Poland
DEAR MR. MINISTER: I have the honor to confirm the following understanding in
relation to United States companies and Polish companies which was reached
between the delegations of the United States and the Republic of Poland in the
course of negotiations of the Treaty Concerning Business and Economic Relations
signed this day:

The Government of the Republic of Poland agrees to designate within the Agency for
Foreign Investments a Deputy President to assist U.S. nationals and companies in
deriving the full benefits of the Treaty in connection with their investment and
associated activities.

The Deputy President will serve as the government coordinator and problem solver
for investors experiencing difficulties with registration, licensing, nondiscriminatory
access to utilities regulatory and other matters.

The office will provide the following types of services:

information on current national and local business/investment regulations, including

licensing and registration procedures, taxation, labor regulation, accounting
standards and access to credit;

a notification procedure on proposed regulatory or legal changes affecting investors

and circulation of notices on regulatory changes and their entry into force;

coordination with Polish government agencies at the national and local level to
facilitate investment and resolve disputes;

identification and dissemination of information on investment projects and their

sources of finance;

assistance to investors experiencing difficulties in repatriating profits and obtaining

foreign exchange.

I have the honor to propose that this understanding be treated as an integral part of
the Treaty Concerning Business a Economic Relations.

I would be grateful if you would confirm that this understanding is shared by your
Government.

Sincerely,

Robert A. Mosbacher
Secretary of Commerce.

[DEPARTMENT OF STATE, DIVISION OF LANGUAGE SERVICES-TRANSLATION

LS No. 132108 A JS/AO Polish]

MINISTRY OF ECONOMIC COOPERATION WITH FOREIGN COUNTRIES,

Under Secretary of State.
Hon. ROBERT A. MOSBACHER,

Secretary of Commerce, US. Department of Commerce, Washington,

DEAR MR. SECRETARY: I have the honor to confirm the following understanding
reached between the delegations of the Republic of Poland and the United States in
the course of the negotiations of the Treaty Concerning Business and Economic
Relations signed this day:

[The English translation of this letter agrees in all substantive respects with the text of
Secretary Mosbacher's letter on assistance to investors.]

I have the honor to propose that this understanding be treated as an integral part of
the Treaty Concerning Business and Economic Relations.
I would be grateful if you would confirm that this understanding is shared by your
Government.

Respectfully,

(S) D. LEDWOROWSKI.

WASHINGTON, March 21, 1990.

DEPARTMENT OF COMMERCE,
Washington DC, March 21, 1990.

Mr. DARIUSZ LEDWOROWSKI,

Under Secretary of State,
Ministry of Foreign Economic Relations,
Warsaw, Poland.

DEAR MR. MINISTER: I have the honor to confirm the following understanding in
relation to United States companies and Polish companies providing tourism and
travel-related services, which was reached between the delegations of the United
States and the Republic of Poland in the course of negotiations of the Treaty
Concerning Business and Economic Relations signed this day.

1. The Parties recognize the need to encourage and promote the growth of tourism
and travel-related investment and trade between the United States of America and
the Republic of Poland,

2. The Parties recognize the benefits to both economics of increased tourism and
travel-related investment in and trade between their two territories.
3. Each Party shall ensure, within the scope of its legal authority, that any company
owned, controlled or administered by that Party, or any joint venture therewith, which
effectively controls a significant portion of supply of any travel or tourism services
shall provide that service to the nationals and companies of the other Party on a fair
and equitable basis.

In furtherance of the provisions of this letter, we take note of the Agreement between
the Government of the United States of America and the Government of the Polish
People's Republic on the Development and Facilitation of Tourism, signed on
September 20, 1989.

Nothing in this understanding shall be construed to mean that tourism and travel-
related services shall not receive the benefits from the Treaty Concerning Business
and Economic Relations as fully as other industries and sectors.

I have the honor to propose that this understanding be treated as an integral party of
the Treaty Concerning Business and Economic Relations.

I would be grateful if you would confirm that this understanding is shared by your
Government.

Sincerely,

ROBERT A. MOSBACHER,
Secretary of Commerce.

[DEPARTMENT OF STATE, DIVISION OF LANGUAGE SERVICES-TRANSLATION

LS No. 132108 A JS/AO Polish]

MINISTRY OF ECONOMIC COOPERATION WITH FOREIGN COUNTRIES,

Under Secretary of State.

Hon. ROBERT A. MOSBACHER,

Secretary of Commerce,
U.S. Department of Commerce,
Washington, D.C.

DEAR MR. SECRETARY: I have the honor to confirm the following understanding
reached between the delegations of the Republic of Poland the United States in the
course of the negotiations of the Treaty Concerning Business and Economic
Relations signed this day.
[The English translation of this letter agrees in all substantive respects with the text of
Secretary Mosbacher's letter on tourism.]
I have the honor to propose that this understanding be treated as an integral part of
the Treaty Concerning Business and Economic Relations.
I would be grateful if you would confirm that this understanding is shared by your
Government.
Respectfully,

(S) D. LEDWOROWSKI.

WASHINGTON, March 21, 1990