AUSTRALIA AND THE REPUBLIC OF HUNGARY (hereinafter referred to as "the Contracting Parties"), 

RECOGNISING the importance of promoting the flow of capital for economic activity and development and aware of its role in expanding economic relations and technical co-operation between them, particularly with respect to investment by nationals of one Contracting Party in the territory of the other Contracting Party; 

ACKNOWLEDGING that investments of nationals of one Contracting Party in the territory of the other Contracting Party would be made within the framework of laws of that other Contracting Party; and 

RECOGNISING that pursuit of these objectives would be facilitated by a clear statement of principles relating to the promotion and protection of investments, combined with rules designed to render more effective the application of these principles within the territories of the Contracting Parties, 

HAVE AGREED as follows: