RJR Nabisco Inc. (Formerly R.J. Reynolds Industries, Inc.) and Consolidated Subsidiaries - Page 20

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          except for Aminoil’s contention relying on the “stabilization               
          clauses” of the concession agreement (the stabilization clauses).           
          Introducing the tribunal’s analysis of the stabilization clauses,           
          section five states:                                                        
               Nevertheless, Aminoil’s concessionary contract                         
               contained specific provisions in the light of which it                 
               may be queried whether the nationalisation was in truth                
               lawful.                                                                
          The stabilization clauses are set forth in section five as                  
          follows:                                                                    
               The period of this Agreement shall be sixty (60) years                 
               from the date of signature.                                            
                              *     *     *     *     *                               
               The Sheikh shall not by general or special legislation                 
               or by administrative measures or by any other act                      
               whatever annul this Agreement except as provided in                    
               Article 11.  No alteration shall be made in the terms                  
               of this agreement by either the Sheikh or the Company                  
               except in the event the Sheikh or the Company jointly                  
               agreeing that it is desirable in the interest of both                  
               parties to make certain alterations, deletions or                      
               additions to this agreement.                                           
                             *     *     *     *     *                                
               [Article 11(b)]  Save as aforesaid this Agreement shall                
               not be terminated before the expiration of the period                  
               specified in Article 1 thereof except by surrender as                  
               provided in Article 12 or if the Company shall be in                   
               default under the arbitration provisions of Article 18.                
          Section five continues:  “A straightforward and direct reading of           
          them [the stabilization clauses] can lead to the conclusion that            
          they prohibit any nationalisation.”  Nevertheless, the tribunal             
          concluded that the expropriation was valid, based on the                    
          following grounds: (1) The stabilization clauses do not prohibit            
          nationalization in so many words, (2) a stabilization clause                



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