such funds would be entitled in the hands of the
party under Coverage. Such amounts and credits may
be transferred by the Issuer to any person or entity
in the territory of The Bahamas.

ARTICLE 6

(a) Any dispute between the Government of the
United States of America and the Government of The
Bahamas regarding the interpretation of this Agree-
ment or which, in the opinion of one of the Governments,
involves a question of public international law arising
out of any project or activity for which Coverage has
been issued shall be resolved, insofar as possible,
through negotiations between the two Governments. If
at the end of three months following the request for
negotiations the two Governments have not resolved
the dispute by agreement, the dispute, including the
question of whether such dispute presents a question
of public international law, shall be submitted, at
the initiative of either Government, to an arbitral
tribunal for resolution in accordance with Article
6(b).

(b) The arbitral tribunal for resolution of
disputes pursuant to Article 6(a) shall be established
and function as follows:

(i) Each Government shall appoint one arbitrator;

these two arbitrators shall designate a president

by common agreement who shall be a citizen of a

third state and be appointed by the two Govern-

ments. The arbitrators shall be appointed within

two months and the president within three months


limit the right of the Government of the United States
of America to assert a claim under international law
in its sovereign capacity, as distinct from any rights
it may have as Issuer.

(c) The issuance of Coverage outside of The
Bahamas with respect to a project or activity in
The Bahamas shall not subject the Issuer to regula-
tion under the laws of The Bahamas applicable to
insurance or financial organizations,

(4) Funds introduced or acquired in The Bahamas
or withdrawn from The Bahamas by the Issuer shall be
exempt from all taxes upon income, real property or
sales, from customs duties, and from any other similar
taxes or levies in The Bahamas.

ARTICLE 4

To the extent thr* the laws of The Bahamas
partially or wholly invalidate or prohibit the
acquisition from a party under Coverage of any interest
in any property within the territory of The Bahamas
by the Issuer, the Government of The Bahamas shall
permit such party and the Issuer to make appropriate
arrangements pursuant to which such interests are
transferred to an entity permitted to own such
interests under the laws of The Bahamas.

ARTICLE 5

Amounts in the lawful currency of The Bahamas,
including credits thereof, acquired by the Issuer by
virtue of such Coverage shall be accorded treatment
by the Government of The Bahamas no less favorable

as to use and conversion than the treatment to which


of the date of receipt of either Government's
request for arbitration. If the appointments
are not made within the foregoing time limits,
either Government may, in the absence of any other
agreement, request the President of the International
Court of Justice to make the necessary appointment
or appointments, and both Governments agree to
accept such appointment or appointments.
(ii) The arbitral tribunal shall base its decision
on the applicable principles and rules of public
international law. The arbitral tribunal shall
decide by majority vote. Its decision shall be
final and binding.
(iii) Each of the Governments shall pay the
expense of its arbitrator and of its representative
in the proceedings before the arbitral tribunal;
the expenses of the president and the other costs
shall be paid in equal parts by the two Governments.
The arbitral tribunal may adopt regulations
concerning the costs, consistent with the foregoing.
(iv) In all other matters, the arbitral tribunal
shall regulate its own procedures,

ARTICLE 7

This Agreement shali continue in force until six

months from the date of receipt of a note by which one
Government informs the other of an intent no longer to
be a party to the Agreement. In such event, the provi-
sions of the Agreement with respect to Coverage issued

while the Agreement was in force shall remain in force


MINISTRY OF FOREIGN AFFAIRS

P.O. BOX N-3746

NASSAU, BAHAMAS

27 September, 1984

No. 420

The Ministry of Foreign Affairs of The Commonwealth
of The Bahamas presents its compliments to the Embassy of the
United States of America and has the honour to refer to the
Embassy's Note No. 42 dated 5 April, 1983 in which the
Government of the United States expressed its desire to
conclude an Investment Insurance Incentive Agreement with

the Government of The Bahamas.

The Ministry is pleased to inform the Embassy that the
appropriate Bahamian Authorities have approved the text of

the Agreement as proposed.

. Yhe Ministry of Foreign Affairs of The Commonwealth of
The Bahamas avaiis itself of this opportunity to renew to the
Embassy of the United States of America the assurances of its

highest consideration.

Embassy of the United States of America
Queen Street
Nassau, Bahamas


for the duration of such Coverage, but in no case
longer than twenty years after the denunciation of

the Agreement.

Upon receipt of a note from Your Excellency indicating that
the foregoing provisions are acceptable to the Government of
The Bahamas, the Government of the United States of America
will consider that this note and your reply thereto constitute
an Agreement between our two Governments on this subject, to
enter into force on the date of the note by which the Government
of The Bahamas communicates to the Government of the United
States of America that this exchange of notes has been approved
pursuant to its constitutional procedures.

Accept, Excellency, the renewed assurances of my

highest consideration."

I have the honour to inform Your Excellency that the
foregoing proposals are acceptable to the Government of The
Commonwealth of The Bahamas and in consequence Your Excellency's
Note and this reply should constitute an Agreement between our
two Governments in this matter which shall enter into force
with effect from the date of this letter.

Accept, Excellency, the assurances of my highest

consideration.

ee ee
P L Adderley ae

MINISTER OF FOREIGN AFFAIRS
AND ATTORNEY GENERAL

His Excellency Dr Lev E Dobriansky
Ambassador of the United States of America
Embassy of the United States of America
NASSAU, Bahamas


MINISTRY OF FOREIGN AFFAIRS
Nassau, Bahamas

27 September, 1984.

No. 419
Excellency,

I have the honour to acknowledge receipt of Your
Excellency's Note No. 42 of 5th April, 1983, which reads as

follows:

"] have the honor to refer to conversations which have
taken place between representatives of our two Governments
relating to economic activities in The Bahamas which promote
the development of the economic resources and productive
capacities of The Bahamas and to investment insurance
(including reinsurance) and guaranties which are backed in
whole or in part by the credit or public monies of the United
States of America and are administered either directly by the
Overseas Private Investment Corporation ("OPIC"), an independent
government corporation organized under the laws of the United
States of America, or pursuant to arrangements between OPIC
and commercial insurance, reinsurance and other companies.

I have the honor to transmit the following proposed language
of an Overseas Private Investment Corporation ("OPIC")
Agreement between our two Governments.
ARTICLE 1
As used herein, the term "Coverage shall refer
to any investment insurance, reinsurance or guaranty
which is issued in accordance with this agreement by
OPIC, by any successor agency of the United States of

America or by any other entity or group of entities,


pursuant to arrangements with OPIC or any successor
agency, all of whom are hereinafter deemed included
in the term "Issuer" to the extent of their interest
as insurer, reinsurer, or guarantor in any Coverage,
whether as a party or successor to a contract
providing Coverage or as an agent for the
administration of Coverage.
ARTICLE 2

The procedures set forth in this Agreement shall
apply only with respect to Coverage relating to pro-
jects or activities registered with or otherwise
approved by the Government of The Bahamas or to
Coverage relating to projects with respect to which
the Government of The Bahamas, or any agency or
political subdivision thereof, has entered into a

contract involving the provision of goods cr services.

SEICLE 3

(a) If the Issuer makes payment to any party
under Coverage, the Government of The Bahamas shall,
subject to the provisions of Article 4 hereof, recog-
nize the transfer to the Issuer of any currency,
credits, assets, or investment on account of which
payment under such Coverage is made as well as the
succession of the Issuer to any right, title, claim,
privilege, or cause of action existing, or which may
arise, in connection therewith.

(b) The Issver shall assert no greater rights
than those of the transferring party under Coverage
with respect to any interests transferred or succeeded

to under this Article. Nothing in this Agreement shall