" » REPUBLIQUE ARABE DU YEMEN

The Yemini Ministry of Foreign Affairs to the American Embassy

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Government’s request for arbitration. If the appointments are not
made within the forecoing 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 tri-
bunal shall decide by majority vote. Its decision shall be final and
binding. Only the two Governments may request the arbitral pro-
cedure and participate in it.

(iii) Each of the Governments shall pay the expense of its arbi-
trator 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. .

(iv) In all other matters, the arbitral tribunal shall regulate its
own procedures. : :

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 to 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 denun-
ciation of the Agreement.

8. This Agreement shall enter into force on the date of the note by
which the Host Government communicates to the Issuing Government
that the Agreement has been approved in conformity with the Host
Government’s constitutional procedures.

Upon receipt of a note from Your Excellency indicating that the

" foregoing provisions are acceptable to the Government of the Yemen

Arab Republic, the Government of the United States of America will
consider that this note and your reply thereto constitute an Agree-
ment between our two Governments on this subject, the Agreement to
enter into force in accordance with Paragraph 8.
Accept, Excellency, the renewed assurances of my highest
consideration.
-Ronerr A. Sremw

Robert A. Stein
Charge d'Affaires ai.

’ His Excellency

Moustn Av-AtNt,
Prime Minister of the
Yemen Arab Republic.

MT 4LO sean


Translation

THE YEMEN ARAB REPUBLIC
MONISTRY OF FOREIGN AFFAIRS

Legal Department
No. 553 : Decemper 4, 1972

To the Embassy of the United States of America, San’a:

The Ministry of Foreign Affairs of the Yemen Arab Republic pre-
sents its compliments to the Embassy of the United States of America
and has the honor to refer to the Embassy's note of October 22, 1972,
regarding the draft agreement between the Government of the Yemen
Arab Republic and the Government of the United States of America
to foster investments, as well as the pleasure to inform the Embassy of
the approval by the higher authorities and the competent authorities
in the Government of the Yemen Arab Republic of all the terms con-

" tained in'the Embassy's aforementioned note. .

This note was prepared in compliance with the provisions of Arti-
ele (8) of the Agreement.

The Ministry of Foreign Affairs of the Yemen Arab Republic avails
itself of this opportunity to express to the Embassy of the United
States of America the assurances of its highest consideration.

[seax] [Initialed]


@ FREATIES AND OTHER INTERNATIONAL ACTS SERIES 7586

ae
1
INVESTMENT GUARANTIES

Agreement Between the
Unirep Srares or AsreRrca
and the Yemen Aras Reeuszic

e. Effected by Exchange of Notes .
, Dated at San’a October 22 and December 4, 1972



YEMEN ARAB REPUBLIC

Investment Guaranties

Agreement effected by exchange of notes
Dated at San’a October. 22 and December 4, 19723;
Entered into force December 4, 1972.

Lhe American Chargé d’Affaires ad interim to the
Yemini Prime Minister

AMERICAN -EMBASSY, SANAA —

Ocrorer 22, 1972
EXceLLency:

Ihave the honor to refer to conversations which have recently taken
place between representatives of our two governments relating to
investments in the Yemen Arab Republic which promote the develop-
ment of the economic resources and productive capacities of the Yemen
Arab Republic and to insurance and guaranties of such investments
jssued as an incentive by the Government of the United States of
America. I also have the honor to confirm the following understand-
ings reached as a result of those conversations:

1. When an investor proposes to invest in a projector activity within
the Yemen Arab Republic, with the assistance of insurance orguaran-
ties (hereinafter referred to as “coverage”) issued pursuant to this
Agreement by the Government of the United States of America, the
Government of the United States of America (the Issuing Govern-
ment) and the Government of the Yemen Arab Republic (the Host
Government) shall, upon the request of either, consult respecting the
nature of the project or activity:

2. The procedures set forth in this Agreement shall apply only with
respect to coverage of investments in projects or activities approved
by the Host Gov ernment.

8. If the Issuing Government makes payment to any investor under
coverage issued pursuant to this Agreement, the Host Government
shall, subject to the provisions of Paragraph 4, recognize the transfer
to the Issuing Government of any currency, credits, assets, or invest-
ment on account of which payment under such coverage is made as well
as the succession of the Issuing Government to any right, title, claim,


privilege, or cause of action existing. or which may arise, in connection
therewith. The Issuing Government shall assert no greater rights than
those of the transferring investor with respect to any interests trans-
ferred or succeeded to under this paragraph. The Issuing Government
does, however, reserve its rights to assert a claim in its sovereign
capacity under international law.

4. To the extent that the laws of the Host Government partially or
wholly invalidate or prohibit the acquisition from a covered investor
of any interests in any property within its territory by the Issuing
Government, the Host Government shall permit such investor and the
Issuing Government to make appropriate arrangements pursuant to
which such interests are transferred to an entity permitted to own sach
interests under the laws of the Host Government. .

5. Amounts in the lawful currency of the Host Government and
credits thereof acquired by the Issuing Government under coverage
issued pursuant to this Agreement shall be accorded treatment no less
favorable than that accorded to funds of nationals of the United States -
of America deriving from investment activities like those in which the
investor has been engaged, and such amounts and credits shall be freely
available to the Issuing Government for its use in the territory of the
Host Government. : |

6. (2) Differences between the two Governments concerning the
jnterpretation of the provisions of this Agreement shall be resolved,
insofar as possible, through negotiations between the two Govern-
ments. If such a difference cannot be resolved within a period of three
months following the request for such negotiations, jt shall be sub-
mitted, at the request of either Government, to an arbitral tribunal
for resolution in accordance with Paragraph 6(c).

(b) Any claim, arising out of any investment for which coverage
has been issued in accordance with this Agreement, against either of
the two Governments, which, in the opinion of the other, presents a
question of public international law shall, at the request of the Govern-
ment presenting the claim, be submitted to negotiations. If at the end
of three months following the request for negotiations the two Govern-
ments have not resolved the claim by mutual agreement, the claim,
including the question of whether it presents a question of public inter-
national law, shall be submitted, at the request of either Government.
to an arbitral tribunal for resolution: in accordance with Para-
graph 6(c). .

(c) The arbitral tribunal for resolution of disputes pursuant to
Paragraphs 6(2) and 6(b) 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 Gov-
ernments. The arbitrators shall be appointed within two months and
the President within three months of the date of receipt of either