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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 2008

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GUARANTY OF PRIVATE INVESTMENTS

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IAgreement, -with Exchange of Notes,

between the United States of America

and Japan

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• Signed at Tokyo March 8, 1954

O Entered into force May 1, 1954

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The Government of the United States of America and

the United States of America.and Japan from the guaranties

by the United States of America of private investments

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Peslrlng to set forth the understandings concerning

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Have agreed as follows;

ARTICLE I

The Government of the United States of America and

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'62 Stat. 144; 22 U.S.C. § 1509 (b) (3).

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SNT BETIVEEN THE UNITED STATES OP AMERICA

AND JAPAN REGARDING THE GUARANTT

OP INVESTMENTS

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the Government of Japan will, upon the request of either

Government, consult respecting projects in Japan proposed

by nationals of the United States of America with regard

to which guaranties under Section 111 (b) (3) of the

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Economic Cooperation Act of 1948, as amended, may bo

made or are under consideration.

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the Government of Japan;

Recognizing that economic benefits will accrue to

which may be made in Japan by nationals of the United

States of America pursuant to the provisions of Section

111 (b) (3) of the Economic Cooperation Act of 1948, ais

amended; 1*1 and

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such guaranties;

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< of the United States of America in accordance v/lth the

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the United'States of‘America pursuant to such guaranties

shall, be accorded treatment'not less favorable than that'

of any compensation for loss covered by such guaranties

receiived from the Government Of Japan;

(2) That yen amounts acquired by the Government of

accorded, at the time of such acquisition, to private

funds arising fj?om transactions of United States nationals

which are comparable to the transactions covered by such

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shall also recognize any transfer to the Government of

the United States of America pursuant to such guaranty

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person under any such guaranty, the Government of Japan

will recognize the transfer to the Government of the

United States of America of any right, title or interestof such person in assets, currency, credits, or other

property on account of vrtilch such payment was made and

the subrogation of the Government of the United States

of America to any claim or cause of action of such person

arising in connection therewith. The Government of Japan

ARTICLE II

V.'lth respect to guaranties extended by the Governmen-i?

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provisions of the Section referred to in Article I to

projects v/hlcii are approved by the Government of Japan,

the Government of Japan agrees:

(1) That if the Government of the United States of

America makes payment in United States dollars to any

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,• _3hall be one who may bo designated by the President of

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'the International Court of Justice at the request of '

either' Government. , • ' •

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IN WITNESS WHEREOF the representatives of the two

Governments, duly authorized for the pui^oso, have signed

this Agreement. ' '

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i •• ! . guaranties, and that such yen amounts may bo used without

restriction by the Government of the United States of

America for ndn-mllltary administrative expenditures;

(3) That any claim against the Government of Japan -

to which the Government.of the United States of America

may bo subrogated as the result of any payment under such

a guaranty, ’shall bo 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 bo referred for final and binding determination

to. a sole arbitrator soloctod by mutual agreement. If .

the Governmenta are unable, within a period of three

months, to agree upon such selection, the arbitrator

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ARTICLE III /.

This Agreement sliall enter Into force on the date

of receipt by the Government of the United States of

America of a note from the Government of Japan p]stating

that Japan has approved the Agreement In accordance

with Its legal procedures.

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equally authentic, at Tokyo, thia

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> For Japan:

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KATSUO OKAZAKI

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the English and Japaneae

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eighth

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JOHN M. ALLISON •

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done In duplicate. In

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day of March,, one

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Translation

u Tokyo, March 8^ 195Jf.

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His Excellency

Mr. John M. Allison

Ambassador Extraordinary and Plenipotentiary

of the United States of America to Japan

Mr. Ambassador,

[For the English translation of this note, see below.]

I avail myself of this opportunity to renew to Your Excellency,

Mr. Ambassador, the assurance of my highest consideration.

Katsuo Okazaki

Minister for Foreign Affairs

of Japan

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No. 1327

Excellency :

I have the honor to refer to Your Excellency’s Note of March 8,

1954, which reads as follows:

“I have the honor to refer to the Agreement signed today between

Japan and the United States of America regarding the Guaranty of

Investments.

“It is the understanding of my Government that specific approval

by the Government of Japan of each investment to be made by nationals of the United States of America, and to be guaranteed by the

Government of the United States of, America, is required prior to

the extension of such' guaranty by that Government.

“My Government further understands that guaranties against inconvertibility, covering investments qualifying under the Foreign Investment Law and the Foreign Exchange and Foreign Trade Control

Law will be drawn with the intention of creating claims by guarani

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The American Ambassador to the Minister for Foreign Affairs of

Japan

THE FOREIGN SERVICE

OF THE

UNITED STATES OF AMERICA

American Embassy, Tokyo

March 8, 1954

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the aforesaid laws.

[seal] John M. Allison

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U. S. GOl’ERNMENT PRINTING OFFICC: 1955 O~^0SO3

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iVccept, Excellency, the renewed

consideration.

His Excellency

Katsuo Okazaki

Minigte/r for Fo'reign Affaim of Japan

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teed investors against the Government of the United States of Amerie • >

only upon the presentation of evidence of refusal by the Governmer.' i

of Japan of applications for the conversion of those yen amounts'^

^he SomsaidTa^^s ’ conditions of

1*7^ '”^‘^e^’S*^‘‘’i<iing of your Government, Your Excellency s hote in confirmation thereof will be appreciated.”

lam pleased to confirm, on behalf of the Government of the United

btates of America, the understandings of the Government of Japan

as stated mJ our Excellency’s Note under reference.

assurances of my highest