ISRAEL

Guaranty of Private Investments

Agreement amending the agreement of August 7 and 8, 1952.
Effected by exchange of notes

Signed at Tel Aviv and Jerusalem July 31 and August 11, 1957;
Entered into force August 11, 1957.

The American Chargé d’Affaires ad interim to the Israeli Minister
Sor Foreign Affairs

No. 10 Tew Aviv, July 31, 1957

EXxcELLENcy:
I have the honor to refer to the ‘conversations which have re-
cently taken place between representatives of our two Govern-
ments, relating to a further type of guaranty authorized by Sec-
tion 413(b)(4) of the Mutual Security Act of 1954, as amended. SESE 1053 wy
T also have the honor to confirm the understandings reached as a “:
result of these conversations as follows:

a. All references to “Economic Cooperation Act of 1948” in the Bes. § a0
exchange of notes of August 7, 1952 and August 8, 1952 between DONE 5 2585,
our two Governments shall be changed to “the Mutual Security #U8T.pt.4,p.s045.
Act of 1954, as amended”.
b. The enclosed copy of Section 413(b)(4) of the Mutual
Security Act of 1954, as amended, shall be substituted for the
copy of Section III of the Economic Cooperation Act of 1948
heretofore enclosed with the aforementioned exchange of notes.
c. Subparagraph (c) of the unnumbered third paragraph of the
aforementioned exchange of notes shall not be applicable to the
type of guaranties provided for in the following subparagraph (d).
d. If the Government of the United States of America, issues
guaranties to cover losses by reason of war with respect to invest-
ments in Israel, the Government of Israel agrees that nationals
of the United States of America to whom such guaranties have
been issued will be accorded by the Government of Israel treat-
ment no less favorable than that accorded, in like circumstances,
to its nationals or nationals of third countries, with reference to
any reimbursement, compensation, indemnification, or any other

97100—87 (1) TIAS 8892


TIAS 2686 2

States nationals which are comparable to the transactions covered
by such guaranties, and that such Israel pounds will be freely available
to the Government of the United States of America for administrative
expenditures;

C. That any claim against the Government of Israel, to which
the Government of the United States of America may be subrogated
as result of any payment under such a guaranty, shall be the subject
of direct negotiations between the two Governments. If, within a
reasonable period, they are unable to settle the claim by agreement,
it shall be referred for final and binding determination to a sole
arbitrator selected by mutual agreement. If the Governments are
unable, within a period of three months, to agree upon such selection,
the arbitrator shall be one who may be designated by the President
of The International Court of Justice at the request of either
Government.

Upon receipt of a note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of Israel,
the Government of the United States of America will consider that
this note and your Excellency’s reply thereto constitute an agreement
between the two Governments on this subject which shall enter into
force on the date of Your Excellency’s note in reply.

Please accept, Excellency, the renewed assurances of my highest
consideration.

Monverr B. Davis
His Excellency
Mosze Suarerr,
Minister for Foreign Affairs
of the State of Israel.

The Israeli Minister for Foreign Affairs to the American Ambassador
ring a a)
bene .w4pn
MINISTRY FOR FOREIGN AFFAIRS
HAKIRYA, ISRAEL Haumyva, 8 August, 1952.
EXcELLENCY,
I have the honour to acknowledge receipt of Your Excellency’s
Note No. 21, dated 7 August, 1952, relating to the industrial invest-
ment guaranty program pursuant to the terms of Section 111 of the


3

The Israeli Minister for Foreign Affairs to the American Chargé
ad’ Affaires ad interim
MINISTER FOR FOREIGN AFFAIRS TIARA SS
UBA 515.1
JERUSALEM, 11 August 1957

Mr. Cuarcé p’AFFAIRES,

I have the honour to acknowledge receipt of your Note No. 10
dated 31 July 1957, relating to a further type of guaranty author-
ized by Section (b) (4) of the Mutual Security Act of 1954, as
amended, and to confirm that the provisions set forth in that Note
are acceptable to the Government of Israel, which considers your
Note and this reply as constituting an agreement between the two
Governments on this subject, entering into force on this date.

Accept, Mr. Chargé d’Affaires, the renewed assurances of my
highest consideration.

Gotpa MER

Mr. Wiiu1am O. Baxter,
Chargé d’ Affaires,
Embassy of the United States of America
in Israel.

TIAS 8892

U, §, COVERNWENT PRONTING OFFICE: 1987


2

payment, including the distribution of reparations received from
enemy countries, that the Government of Israel may make or
pay for losses incurred subsequent to the signing of this note
by reason of war; if the Government of the United States of
America makes payment in U.S. dollars to any national of the
United States of America under a guaranty for losses by reason of
war, the Government of Israel recognize the transfer to the United
States of America of any right, privilege, or interest, or any part
thereof, that such nationals may be granted or become entitled
to as a result of the aforementioned treatment by the Government
of Israel.

All other provisions of the exchange of notes of August 7, 1952,
and August 8, 1952, between oui two Governments shall remain
in full force and effect.

Upon receipt of a note from Your Excellency indicating that
the foregoing provisions are acceptable to the Government of
Israel, the Government. of the United States of America will
consider that this note and your reply thereto constitute an

_ agreement between the two Governments on this subject, the
agreement to enter into force on the date of your note in reply.

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

Wim 0. Baxren

Enclosure: [1]
Section 413(b)(4) of the
Mutual Security Act of 1954,
as amended.

Her Excellency
Goxpa Mer,
Minister for Foreign Affairs
of the State of Israel.

"4 Not-printed.

“TIAS. 8892


The American Ambassador to the Israeli Minister for Foreign Affairs

American Exrnassy,
No, 21 Tel Aviv, August 7, 1962.

EXCELLENCY :

I have the honor to refer to conversations which have recently
taken place between representatives of our two Governments relating
to the industrial investment guaranty program pursuant to the terms
of section 111 of the Economic Cooperation Act of 1948, as
amended, [*] and to confirm the understandings reached as a result
of these conversations as follows:

The Governments of Israel and of the United States of America
will, upon request of either of them, consult respecting investments
in Israel made or proposed by nationals of the United States of
America who have applied for guaranties under Section 111 (b) (8)
of the Economic Co-operation Act of 1948, as amended, and whose
investments have been approved by the Government of Israel for the
purpose of such guaranties. With respect to such guaranties the
Government of Israel agrees:

A. That if the Government of the United States of America makes
payment in United States dollars to any person under any such
guaranty the Government of Israel will recognize transfer to the
United States of any right, title or interest of such persons in assets,
currency, credits, or other property on account of which such payment
was made and subrogation of the United States to any claim or
cause of action of such person arising in connection therewith. The
Government of Israel shall also recognize any transfer to the Govern-
ment of the United States of America pursuant to such guaranty of
any compensation for loss covered by such guaranties received from
any source other than the Government of the United States of
America;

B. That Israel pounds acquired by the Government of the United
States of America pursuant to such guaranties shall be accorded
treatment not less favorable than that accorded, at time of such
acquisition, to private funds arising from transactions of United

+62 Stat. 144; 22 U. S.C. § 1508 (b) (3).

1
82241—58 @)


ISRAEL

Investment Guaranties

Agreement relating to the agreement of August 7 and 8, 1952, as
amended.

Effected by exchange of notes

Signed at Tel Aviv and Jerusalem February 5 and 20, 1963;

Entered into force February 20, 1963.

The American Ambassador to the Israeli Minister for Foreign Affairs

EmMpassy OF THE
Unrrep Srates or America
No. 62 © Tel Aviv, February 5, 1963.

EXcELLENCY:

T have the honor to refer to the agreement effected by the exchange
of notes of August 7 and August 8, 1952,[*] as amended by the ex-
change of notes of July 31 and August 11, 1957, [?] between our two
Governments relating to investment guaranties which may be issued
by the Government of the United States of America for investments
in activities in Israel. After the conclusion of this agreement, legisla-
tion has been enacted in the United States of America modifying and
augmenting the coverage to be provided investors by investment guar-
anties that may be issued by the Government of the United States of
America.

In the interest of facilitating and increasing the participation of
private enterprise in furthering the economic development of Israel,
the Government of the United States of America is prepared to issue
investment guaranties providing such coverage as may be authorized
by the applicable United States legislation for appropriate investments
in activities approved by your Government provided that your Goy-
ernment agrees that the undertakings between our respective Govern-
ments contained in the above-mentioned agreements will be applicable
to such guaranties.

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Government of Israel and that such

*TiAS 2686; 3 UST (pt. 4) 5045.
*TIAS 3892; 8 UST 1410.

97659—63 q) TIAS 5316


3 TIAS 2686

Economic Co-operation Act of 1948, as amended, and to confirm

that the provisions set forth in that Note are acceptable to the
Government of Israel, which considers Your Excellency’s Note and
this reply as constituting an agreement between the two Governments
on this subject, entering into force on this date,

Accept, Excellency, the renewed assurances of my most distinguished
consideration.

M. Swaretr
Minister for Foreign Affairs

His Excellency
Mr. Monnett B. Davis,
United States Ambassador,
Tel Aviv.

U.S. GOVERNMENT PRINTING OFFICE: 1953


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 2686

ECONOMIC COOPERATION

Guaranties Under Public Law 472, 80th Congress,
as Amended

Agreement between the
Unrrep States oF AMERICA
and IskaEL

@ Effected by Exchange of Notes
Signed at Tel Aviy August 7 and 8, 1952

@ Entered into force August 8, 1952



TREATIES AND OTHER INTERNATIONAL ACTS SERIES 3892

GUARANTY OF PRIVATE INVESTMENTS

Agreement Between the
Unirep States OF AMERICA
and IsraEL

Amending Agreement of August 7 and 8, 1952
Effected by Exchange of Notes

Signed at Tel Aviv and Jerusalem
July 31 and August 11, 1957



3

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Government of Israel and that such
undertakings shall apply, the Government of the United States of
America will consider that this note ‘and your reply thereto consti-
tute an Agreement between our two Governments on this subject,
the Agreement to enter into force on the date of your note in reply.

Accept, ... .”

I have the honour to convey my concurrence in the foregoing, and
I confirm that Your Excellency’s Note and my reply thereto consti-
tute an Agreement between our two Governments, the Agreement to
enter into force on the date of this Note.

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

Gorpa Mer

His Excellency Mr. W. Bargour,
Ambassador of the
Dnited States of America in Israel

TIAS 5316

.5, GOVERNMENT PRINTING OFFICE:1963


2

undertakings shall apply, 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.

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

Watworty Barsour
Her Excellency
Mrs. Gowwa Mur,
Minister for Foreign Affairs
of the State of Israel.

The Israeli Minister for Foreign Affairs to the American Ambassador

MINISTER FOR FOREIGN AFFAIRS

yin Ww
Jerusatem, February 20, 1963

ExceLLENcr :

I have the honour to refer to Your Exceliency’s Note No. 62 dated
February 5, 1968, relating to investment guaranties which may be
issued by the Government of the United States of America for invest-
ments in activities in Israel, reading as follows:

“Excellency :

I have the honor to refer to the agreement effected by the Ex-
change of notes of August 7 and August 8, 1952, as amended by the
exchange of notes of July 31 and August 11, 1957, between our two
Governments relating to investment guaranties which may be issued
by the Government of the United States of America for invest-
ments in activities in Israel. After the conclusion of this agree-
ment, legislation has been enacted in the United States of America
modifying and augmenting the coverage to be provided investors
by investment guaranties that may be issued by the Government of
the United States of America.

In the interest of facilitating and increasing the participation of
private enterprise in furthering the economic development of Israel,
the Government of the United States of America is prepared to issue
investment guaranties providing such coverage as may be author-
ized by the applicable United States legislation for appropriate
investments in activities approved by your Government provided
that your Government agrees that the undertakings between our
respective Governments contained in the above-mentioned agree-
ments will be applicable to such guaranties.

TIAS 5816