=4e

(d) Funds introduced or acquired in Kiribati or
withdrawn from Kiribati by the Issuer with respect to
finance projects shall be exempt from all taxes upon income,
real property or sales, from customs duties, and from any

other similar taxes or levies in Kiribati.

ARTICLE 4

To the extent that the laws of Kiribati partially or
wholly invalidate or prohibit the acquisition from a party
under Coverage of any interest in any property within the
territory of Kiribati by the Issuer, the Government of
Kiribati 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 Kiribati.



{1i) 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 representation 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.

(1v) In all other matters, the arbitral tribunal shall

regulate its own procedures.

ARTICLE 7

This Agreement shall 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 of
the Agreement. In such event, the Provisions of the
Agreement with respect to Coverage issued while the
Agreement was in force shall remain in force for the
duration of such Coverage, but in no case longer than twenty

years after the denunciation of the Agreement,


ARTICLE 3

(a) If the Issuer makes payment to any party under
Coverage, the Government of Kiribati shall, subject to the
provisions of Article 4 hereof, recognize 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 Issuer shall assert no greater rights than
those of the transferring party under Coverage with respect
te any interests transferred or succeeded to under this
Article. Nothing in this Agreement shall 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 Kiribati with
respect to a project or activity in Kiribati shall not
subject the Issuer to regulation under the laws of Kiribati

applicable to insurance or financial organizations.


=5-

ARTICLE 5

Amounts in the lawful currency of Kiribati, including
credits thereof, acquired by the Issuer by virtue of such
Coverage shall be accorded treatment by the Government of
Kiribati no less favorable as to use and conversion than the
treatment to which such funds would be entitled in the hands

of the party under Coverage.

Such amounts and credits may be -ransferred by the
Issuer to any person or entity and upon such transfer shall
be freely available for use by such person or entity in the

territory of Kiribati.

ARTICLE 6

(a) Any dispute between the Government of the United
States of America and the Government of Kiribati regarding
the interpretation of this Agreement 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


ley aon treemean a ae

Upon receipt of a note from Your Excellency indicating
that the foregoing provisions are acceptable to the
Government of Kiribati, 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 Kiribati 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 assurance of my highest
consideration.

Sincerely,

Alpe 7 Legon

Evelyn I.H. Teegen
» Ambassador of the
United State of America



MINISTRY OF FOREIGN AFFAIRS

P.0. Box 68, BAIRIKI, TARAWA,

REPUBLIC OF KIRIBATI

Phone: 21342
Telex: KI770S4 SECAB
Fax: 0686 21466

‘Your ref:

i Our ref

Dear Madame Ambassador,

RE: INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF KIRIBATL

I have the honour to refer to your note number 04 dated
January 22, 1990 and to the Overseas Private Investment
Corporation (OPIC) Investment Incentive Agreement.

I now advise that this Agreement has been approved
pursuant to the constitutional procedures of the
Government of Kiribati and that this exchange of notes
therefore constitutes an Agreement between our two
Governments to enter into effect on the date of this
letter.

Yours sincerely,

Dy dumvony '

imeon ¢
Secretary for Foreign Affairs

Her Excellency Evelyn Teegen
Ambassador

Embassy of the United States of America
Suva

FIJI


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resolved, insofar as pssible, 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) shali be established and function
as follows:

(1) Each Government shall appoint one arbitrator; these two
arbitrators shall designate a president by common agreement
who shall. be a citizen of the third state and be appointed
by the two Governments. The arbitrators shall be appointed
within two months and the president within three months 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 Secretary General of the
International Center for the Settlement of Investment
Disputes to make the necessary appointment or appointments,
and both Governments agree to accept such appointment or

appointments.


EMBASSY OF THE
UNITED STATES OF AMERICA

Note.'No. 04 Suva, Fiji

January 2% 1990

INVESTMENT INCENTIVE AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF KIRIBATI

Mr. Secretary: .

I have the honor to refer to conversations which have
recently taken place between representatives of our two
Governments relating to economic activities dn Kiribati
which promote the development of the economic resources and
Productive capacities of Kiribati 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 also have the honor to
confirm the following understanding reached as a result of
those conversations:

H. E. Peter Timeon,
Secretary of Foreign Affairs,
Republic of Kiribati,


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 projects or
activities registered with or otherwise approved by the
Government of Kiribati or any agency or political
subdivision thereof or to Coverage relating to projects with
respect to which the Government of Kiribati has entered into
a contract involving the provision of goods or services or

invite tenders on such a contract.