issued while the Agreement was in force shall remain in foree for
the duration of those guaranties, in no case longer than 20 years
after the denunciation of the Agreement,

Accept, Excellency, the renewed assurances of my highest
consideration.” E

Ihave the honour to confirm that the Government of Uganda is in

agreement with the foregoing. - ~ cerca -
Please accept, Excellency, the asswrances of my highest
consideration. :

L. Lurowa

(Lameka Lubowa),
Minister of Commerce and Industry

H. E. Mr. Oxcorr H. Dextre,
: Ambassador of the United States of America,
- Embassy of the United States of America,
P.O. Bow 1916, :
. Kampala.

TIAS 5818

©.5, covenNMeNT PAINTING OFFICE IEE



cn

of Uganda shall Tecognize such transfer as valid and effective, The

Oovernment of the United States of America shall not seek to assert
Sreater rights than those of the transferring investor under the Jaws
of Uganda with tespect to the transf; erred currency, credits, claims,
rights or interests. The Government. of the United States does,
however, reserve its rights to assert a claim in its Sovereign capacity
i ui Justice-or-other questions of state
responsibility as defined in international law,

4 Lawful currency of Uganda, including credits thereof, which
is acquired by the Government of the United States of America
pursuant to a transfer of carrency or from the sale of Property trans-

erred under an, investment uaranty shall be accorded treatment
by the Government of Uganda with respect to exchange, repatria-
tion or use thereof, not Tess favourable than thaé accorded to funds
of nationals of the United States of America derived from activities
similar to those in which the investor had been engaged, and such
currency may in any event be used by the Government of the United
tates of America for any of its ex penditures in Uganda.
5. Any dispute regarding the interpretation or application of
the provisions of this Agreement or any claim against the Govern. ;
ment of Uganda to which the Government of the United States of ee
America may succeed ag transferee op which may arise from the
events causing Payment under an investment guaranty shall, upon
‘© request of either Goverm nent, be the subject of negotiations
etween the two Governments and shall be settled, insofar as Ppos-
sible, in such negotiations, Tf, within a period of three months
after a request. for negotiation, the two Governments are unable to .
agreement, the dispute or claim ‘

settle any such Uspute or claim by

shall be referred upon the initiative of either Government, tox sole

arbitrator, selected by mntual agreement, for final and binding

determination in light of the applicable Principles of international

Jaw. If the two Governments are unable fo select. an arbitrator

within a period of three months af ter indication by either Govern-
resident of the International

ment of its desire to arbitrate, the P.
Court of Justice shall, at the request of either Government, designate
the arbitrator,

6. Upon receipt of a note from Your Excellency indicating that
the foregoing Provisions are acceptable to the Government of
Uganda, tho Government of the United States of America wil]
consider that this note and your reply thereto constitute an Agres-
ment between ony two Governments on this subject, the agreement
to enter into force on the date of your note in reply.

This Agreement, with any modifications that may from time
to time be mutually agreed upon through further exchanges of notes,
shall continue in force until six months after the date of receipt of

’
a note by which either of ouy two Governments informs the other
of an intent no lon,

nt Q
ger to be a party to the Agreement. Tn such ah :
event the provisions of the Agreement with respect to guaranties

TIAS 581g



-_ UGANDA

Investment Guarantics

Agreement effected by exchange of notes
Signed at Kempala May 29, 1965;
Entered into force May 29, 1965.

Excenuency:

a T have the honor to refer to conversations which have recently
i place between representatives of our two governments relating to

~ investments in Uganda which farther the development of the economic

resources and productive capacities of Ugands and to guaranties of oa
such investments by the Government of the United States of America.

J also have the honor to confirm the following understandings reached

asa result of those conversations: .

|

The American Ambassador to the Uganda Minister of Commerce and

i Industry

{ EMpassy oF THE te
i Unirep Srares or Aarertca

| No. 280 Kampala, May 29, 1965.

i

i

1. The Government of the United States of Amdfica and the Gov-
ernment of Uganda shall, upon the request of cither Government,
consult, concerning investments in Ugands which the Government of
the United States of America may guaranty.

2. The Government of the United States of America shall not
guaranty an investment in Uganda unless the Government of Uganda
approves the activity to which the investment relates and recognizes
H that the Government of the United States of American may guaranty

such investment.

3, Lf an investor transfers to the Government of the United States
of America pursuant to an investment guaranty, (a) currency, includ-
i ing credits thereof, lawful in Uganda, (b) any claims or rights existing
‘ under the laws of Uganda which the investor has or may have arising
from the business activities of the investor in Uganda or from the
events entitling the investor to payment under the investment guar-
i anty, or (c) all or part of the interest under the laws of Uganda of
ron tho investor in any property (real or personal, tangible or intangible)
S within Uganda, the Government of Uganda shall recognize such trans-

|
i
H

An,

50-385-—65 qd) TAS 5818



2

fer as valid and effective. The Government of the United States of
‘America shall not seek to assert greater rights than those of the trans-
ferring investor under the laws of Uganda with respect to the trans-
ferred currency, credits, claims, rights or interests. The Government.
of the United States does, however, reserve, its rights to assert a claim
in its sovereign capacity in the eventuality of a denial Of justice or
other questions of state responsibility as defined in international law.

4, Lawful currency of Uganda, including credits thereof, which is
acquired by the Government ‘of the United States of America pursuant
to a transfer of currency or from the sale of property transferred
under an investment guaranty shall be accorded treatment by the
Government of Uganda with respect to exchange, repatriation or use
thereof, not less favorable than that accorded to funds of nationals
of the United States of America derived from activities similar to
those in which the investor had been engaged, and such currency may
in any event. be used by tho Government of the United States of Amer-
ica for any of its expenditures in Uganda.

5. Any dispute regarding the interpretation or application of the
provisions of this Agreement or any claim against the Government of
Uganda to which the Government of the United States of America
may succeed as transferee or which may arise from the events causing
payment under an investment. guaranty shall, upon. the request of
either Government, be the subject of negotiations between the two
Governments and shall be settled, insofar as possible, in such negotis-
tions. If, within a period of three months after a request for negoti-
ation, the two Governments are unable to settle any such dispute or,
claim by agreement, the dispute or claim shall be referred upon the
initiative of either Government, to a sole arbitrator, selected by mutual
agreement, for final and binding determination in light of the appli-
cablo principles of international law. If the two Governments are
unable to select an arbitrator within a period*of three months after
indication by either Government of its desire to arbitrate, the President
of tho International Court of Justice shall, at the request of either
Government, designate the arbitrator.

6. Upon receipt of a note from Your Excellency indicating that
the foregoing provistons are acceptable to the Government of Uganda,
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, the agreement to enter into force
on the date of your note in reply.

7. This Agreement, with any modifications that may from time
to time be mutually agreed upon through further exchanges of notes,
shall continue in force until six months after the date of receipt of 2
note by which either of our two Governments informs the other of an
intent no longer to be a party to the Agreement. In such event the
provisions of the Agreement with respect to guaranties issued while
the Agreement was in force shall remain in force for the duration of

TIAS 5818



3

those guaranties, in no case longer than 20 years after the denunciation
of the Agreement.

Accept, Excellency, the renewed assurances of my highest
consideration.

Oxcorr TT. Dearne

His Excellency
Lameck Lurowa,
Minister of Commerce and Industry.
Kampala.

The Uganda Minister of Commerce and Industry to the American
Ambassador

Xe 1682 29th May, 1965.

Your Excen.ency,
Thave the honour to refer to Your Note No. 289 of the 29th May,
1965, which reads as follows:

“Excellency: .

T have the honour to refer to conversations which have recently
taken place between representatives of our two governments relating
to investments in Uganda which further the development of the
economic resources and productive capacities of Uganda and to
guaranties of such investments by the Government of the United
States of America. I also have the honour to confirm the following
understandings reached.as a result of those conversations:

1. The Government of the United States of America and ‘the
Government of Uganda shall, upon the request of either’ Govern-
ment, consult concerning investments in Uganda which the Govern-
ment of the United States of America may guaranty.

2. The Government of the United States of America shall not
guaranty an investment in Uganda unless the Government of
Uganda approves the activity to which the investment relates and
recognizes that the Government of the United States of America
may guaranty such investment.

3. If an investor transfers to the Government of the United
States of America pursuant to an investment guaranty, (2) cur-
rency, including credits thereof, lawful in Uganda, (b) any claims
or rights existing under the laws of Uganda which the investor
has or may have arising from the business activities of the investor
in Uganda or from the events entitling the investor to payment
under the investment guaranty, or (¢) all or part of the interest
under the laws of Uganda of the investor in any property (real or
personal, tangible or intangible) within Uganda, the Government

TIAS 5818

ew

seetnosrsymegeytntemtamanreneerensmanorineynrmeromn ntti tone