'Me Kingdom of Spain and the Kingdom of Morocco,

Desiring to strengthen economic cooperation between the two States,

Recognizing the important role played by private, foreign capital investments in the economic development process, and the right of each Contracting Party to determine that role and to define the conditions under which foreign investments may participate in the process,

Recognizing that the only way to establish and maintain sufficient international flow of capital is to sustain a mutually satisfactory investment climate and, with regard to foreign investments, to respect the sovereignty and laws of the host country having jurisdiction thereover, to act in a manner compatible with the policier and priorities adopted by the host country and to endeavour to contribute to it development,

Desiring to establish favourable conditions for capital investment in the two States and to intensify cooperation between investors from the two States, especially in the fields of technology, industrialization and productivity,

Recognizing the need to protect the investments of investors of both States and to stimulate the flow of capital with a view to promoting the economic prosperity of both States,

Have agreed as follows :