- 23 -                                         
          concession did not forbid nationalisation, the stabilization                
          clauses * * * were nevertheless not devoid of all consequence,              
          for they prohibited any measures that would have had a                      
          confiscatory character”; they, therefore, “created for the                  
          concessionaire a legitimate expectation that must be taken into             
          account.”  The tribunal reiterated, too, that from “the time when           
          its rate of production reached a satisfactory level, Aminoil was            
          in the position of an undertaking whose aim was to obtain a                 
          ‘reasonable rate of return’ and not speculative profits which, in           
          practice, it never did realize.”  The tribunal stated further               
          that “over the years, Aminoil had come to accept the principle of           
          a moderate estimate of profits, and * * *  it was this that                 
          constituted its legitimate expectation.”  Concluding, the                   
          tribunal stated:                                                            
               [The Tribunal] considers it to be just and reasonable                  
               to take some measure of account of all the elements of                 
               an undertaking.  This leads to a separate appraisal of                 
               the value, on the one hand of the undertaking itself,                  
               as a source of profit, and on the other of the totality                
               of the assets, and adding together the results                         
               obtained.                                                              
               The tribunal concluded its discussion of principles and                
          methods by stating that it “is necessary in all cases to consider           
          the value of the assets as at the date of transfer, taking due              
          account of the depreciation they have undergone by reason of wear           
          and tear and obsolescence.”  For reasons explained at length in             
          the Award, the tribunal rejected the net book values Kuwait                 
          sought.                                                                     
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