3B

de julgar, de parte da autoridade competente; o retar-
damento injustificavel da decisio judicial, com viclagéo
da lei processual interna.

3. O Senado aprovou a ressalva da Camara com a seguinte emenda
abaixo assinalada:

Ressalva-se que, para fins de arbitramento, por denegagao de justica
entende-se, nos térmos do Art. 6°, § 3°: a inexisténcia de tribunais
regulares, ou de vias normais de acesso a justia; a recusa de julgar,
de parte da autoridade competente; o retardamento injustificével
da decisio judicial, com violacao da lei processual interna.
. 4., A,Cémaza. dos. Deputados,,ao apreciar 0. aditivo do Senado,
rejeitou-o, tendo. os pronunciamentos feitos em Plenario sébre aquéle
aditivo: acentuado..que o-mestap,era ocioso e;redundante, uma ves
que a ressalva originSria da CAmara se referia somente e arbitramento.
5. Nessas condigées, o Govérno brasileiro entende que a reserva se
restringe ao processo de arbitramento previsto no Artigo 6° do Acérdo,
ficando tal processo sujeito as limitagdes na mesma contidas. A
referida reserva néo afeta o prpqeseo de negociagées sébre que dispée
o Acérdo. . sea
Aproveito a oportunidade para renovar a Vossa. Exceléncia os
protestos da minha mais alta consideragao.

V. pa CunHA

A Sua Exceléncia o Senhor Lincotn Gorpon,
Embaizador dos Estados Unidos da América.

Translation

MINISTRY OF FOREIGN AFFAIRS

DPF/DAIDAS/284/880.31(22) SepremBer 16, 1965

Mr. Ampagsapor: :

| -have: the honor to inform Your Excellency that the Brazilian
Government has noted with-satisfaction the conclusion of the
legislative process that led to-approval of the Investment Guaranty
Agreement between the United States of America and the United
States of Brazil of February 6, 1965, the ratification of which I had
the opportunity to communicate by Note No. DPF/DAI/DAS/219/
550.31(22) of September 2 of this year.

2. In this connection I inform Your Excellency that the Chamber
of Deputies approved the Agreement with a reservation to Article
VI, para (3) in the following terms:

Legislative Decree No. 69, of 1965

Article 2. Save that by denial of justice according to the terms of
Article VI, para (3) is understood: the nonexistence of regular courts

TIAS 6827


4

Arbitration Treaty signed in Washington on January 5, 1929.[}]
Only the respective governments may request the arbitral procedure
and participate in it. The selection of arbiters and the method of
their proceeding shall be in accordance with Articles 3, 4,5 and 6 of
the General Treaty of 1929; the finality of and technique for inter-
preting awards of the arbitral tribunal shail be in accordance with
Article 7 of the General Treaty of 1929.

ARTICLE VII

This Agreement shall enter into force on the date of the receipt
of the note by which the Government of the United States of Brazil
communicates to the Government of the United States of America
that the Agreement has been approved in conformity with Brazil’s
constitutional procedures. (?]

ARTICLE VIII

When either of the Signatories to the present Agreement considers
that multilateral arrangements in which both Governments may
come to participate provide a framework for the operation of a pro-
gram of investment guaranties similar to that. herein contained, it
maay‘seek the concurrence of the other Government fer the termination
of the-present Agreement. Such termination. will: become effective on
the date of the receipt of the note expressing that concurrence, unless
otherwise agreed.

ARTICLE IX

Unless terminated in accordance with Article VIII, this Agreement
shail 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 guaranties issued while the Agree-
ment. was in force shall remain in force forthe duration of those

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

ACORDO SOBRE GARANTIA. DE INVESTIMENTOS ENTRE
OS ESTADOS UNIDOS DA AMERICA E OS ESTADOS UNIDOS
DO BRASIL

O Govérno dos Estados Unidos da América e o Govérno dos Estados
Unidos do Brasil,

Tendo presente o quarto objetivo fundamental da Alianca para
o Progresso, enunciado na Carta de Punta del Este:

“Acelerar o processo de uma industrializagéo racional para
aumentar a produtividade global da economia, utilizando plena-

1 TS 886; 49 Stat. 3153.
3 Sept. 17, 1965, date of acceptance by the United States of reservation by
Brazil.

TIAS 6327


9

(D) The Government of the United States of America will request
such withdrawals only (I) to meet its expenditures in Brazil, or
(ID) to present such cruzeiros for transfer into dollars in aceordance
with the first sentence of Article IV, Paragraph 1 of the Agreement.

I shall appreciate receiving Your Excellency’s confirmation that
the foregoing also represents the understanding of the Government
of Brazil. :

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

Lincoun Gorpon

His Excellency
Ambassador Vasco T. Lerrio.pa Cunna,
Minister of Foreign Affairs,
Rio de Janeiro.

MINISTERIO DAS RELACOES EXTERIORES

DPF/DAN/DAS8/34/550.31(22) Em 8 DE FEVEREIRO DE.1965.

Senuor EMBArxADOR,..
Tenho a honra de acusar recebimento da nota de Vossa Exceléncia
n° 554, datada de 8 de fevereiro de 1965, do teor seguinte:

“EXCELENCIA:

Tenho a honrade referir-meao Acérdo de Gurantia de Juvestimentos
concluido entre nossos dois Governos e assinado em Washington a 6
de fevereiro de 1965, a fim de confirmar os seguintes entendimentos, re-
sultantes das consultas efetuadas de conformidade com o Artigo IV,
paragrafo 2 do Acérdo:

(A) Tal como empregado no referido paragrafo 2 do Artigo IV, seré
considerado saldo aquela quantia que exceder o débro do total dos
gastos em cruzeiros no Brasil das agéncias do Govérno dos Estados
Unidos da América durante o periodo de trés meses precedente.

(B) Tais saldos serao depositados 4 conta do Govérno dos Estados
Unidos da América no Banco do Brasil ou outra instituigaéo financeira
oficial que possa vir ser mituamente acordada.

(C) Tais depésitos podem ser sacados pelo Govérno dos Estados
Unidos da América dentro em trés dias apds solicitagao de retirada.

(D) O Gevérno dos Estados Unidos da América solicitaré tais
retiradas apenas: (1) a fim de cobrir seus gastos no Brasil, ou (2) a
fim de apresentar tais quantias em cruzeiros para sna conversdo em
délares, de acérdo com a primeira frase do pardgrafo 1 do Artigo [V
do Acérdo.

Muito agradeceria receber a confirmagado de Vossa Exceléncia de
que o acima exposto representa igualmente o entendimento do Go-
vérno do Brasil.

TIAS 6327.


6

conhecera a sub-rogacéo, operada em favor do Govérno Garantidor.
em dinheiro, créditos, haveres ou investimentos, por conta dos quais
tenha sido efetuado aquéle pagamento, bem como em qualquer
direito, titulo, reivindicagao, privilégio ou direito a agéo, existente ou
que-possa surgir, aos mesmos referentes.

2. Na medida em que as leis do Pafs Recipiente impedirem, no
todo ou em parte, a aquisigéo pelo Govérno Garantidor de bens
iméveis situados no territdrio do Pais Recipiente, permitira o Govérno
do Pais Recipiente que o investidor e o Govérno Garantidor tomem
as medidas legais apropriadas para que tais bens sejam transferidos
a uma entidade capaz de adquiri-los, segundo as leis do Pafs Recipiente.

ARTIGO IV

1. As importéncias em moeda legal do Pafs Recipiente e aos créditos
na mesma expressos, adquiridos pelo Govérno Garantidor, em sua
qualidade de sub-rogado nos térmos do Artigo anterior, sera dispensado
tratamento nem menos nem mais favoravel do que o concedido aos
fundos dos nacionais do Govérno Garantidor, oriundos de investi-
mentos semelhantes aqueles do investidor sub-rogante, ficando essas
importancias e créditos a livre disposigéo do Govérno Garantidor,
para atender As suas despesas no Pafs Recipiente.. :

2. Quando circunstdncias econdmicas aconselharem a manutengéo
do excedente de tais importancias e créditos sébre as despesas referidas
no paragrafo anterior numa instituicdo: financeira mituamente acor-
dada, ‘os dois Governos consultar-se-do sébre as medidas apropriadas
a serem adotadas.

ARTIGO. V.

Made no presente Acdrdo outorgaré a0-Govérno: Garantidor- quais-
quer outros direitos além daqueles que caberiam ao investidor sub-
rogante com respeito a qualquer petigdo, reivindicagao ou direito em
que o' Govérno Garantidor possa ser sub-rogado.

ARTIGO VI

+! Divergéncias entre os dois Governos relativas 4 -interpretagao
dis disposicdes déste Acérdo serfo resolvidas, na medida do possivel,
por‘meio de negociagées entre os mesmos. Se determinada diver-
géncia nao puder ser resolvida dentro de um perfodo de seis meses sub-
seqitente 4 solicitagdéo de tais negociagdes, a mesma podera ser
submetide, a pedido de qualquer um dos Governos, a arbitramento
dé acérdo com o paragrafo 4 déste Artigo.

“2. Qualquer reivindicagdo concernente a um investimento garantido
de conformidade com o presente Acdrdo, contra qualquer dos
Governos, que possa constituir matéria de Direito Internacional
P&blico, sera, a pedido do Govérno que formule a reivindicagdo,
submetida a negociagses. Se, ao fim seis meses subseqiientes ao
pedido de negociagées, os dois Governos nao resolverem a reivindicagéo
por acérdo mituo, a mesma, inclusive se a questdo constitui ou ndo

TYAS’ 6327


Ay

. Inente a capacidade e os servicos tanto do setor privado coma;.do
ptblico, aproveitando os recursos naturais da 4rea, proporcionando
ocupagdéo produtiva e bem remunerada aos trabalhadores total:
ou parcialmente desempregados” e Tendo em mente que os Pro-
gramas de Desenvolvimento Nacional, recomendados na referida
Carta, incluem:

“Promover condigées que estimulem o fluxo de inversées es-
trangeiras que contribuam para o aumento dos recursos de capital
dos pafses participantes, que o requeiram, através de medidas
adequadas .. .”

Considerando que ambos os Governos julgam que a consecugéo

i déstes objetivos seria facilitada através do estabelecimento, entre
| og paises membros da Alianga, de um sistema uniforme de garantias
i de. investimentos, 4
Desejando encorajar a participagaéo privada no desenvolvimento

de recursos econémicos e capacidade produtiva, através de garantias

de investimentos concedidas pelo pais do investidor, e ensejar. con-.

digdes para o estabelecimento de mecanismos multilaterais sébre,

a matéria, wah

@ Concordam no seguinte:

ARTIGO I

Quando os nacionais de um Govérno Signatario se propuserem.a
efetuar investimentos, cobertos por garantia em conformidade com 0
presente Acérdo, num projeto ou atividade dentro da jurisdicéo
territorial do outro Govérno signatério, os dois Governos, a pedido
de qualquer um déles, consultar-se-do com relagio ao projeto ou
atividade e: sua contribuigdo ao desenvolvimento econémico e social.

ARTIGO TT

As disposigées do presente Acérdo sdmente serao aplicaveis a
investimentos, cobertos por garantia, em projetos ou atividades
aprovados para fins de garantia pelo Govérno em cujo territério 0
projeto ou atividade se realizar (doravante denominado “‘o Govémo
i do Pais Recipiente’’). O Govérno que emite garantias em conformidade
com:o presente-Acérdo (doravante denominado “‘o Govérne Garany
tidor’’).. manter&. 0. Govérno do. Pais. Recipiente . constantementa
informado quanto aos tipos de garantias de investimento que se
dispde a conceder, quanto aos critérios utilizados para decidir sébre a
concessio de garantias, bem como quanto aos tipos e montantes de
garantias concedidas relativamente a projetos ou atividades aprovados
pelo Govérno do Pafs Recipiente. :

ARTIGO III

1. Se o Govérno Garantidor efetuar um pagamento em sua moeda
nacional a determinado investidor, em decorréncia de uma garantia
concedida em conformidade com o presente Acérdo, 0 Govérno do
Pais Recipiente, observada a restrigio do paragrafo seguinte, re-

TIAS 6827



8

do presente Acérdo, com respeito a garantias concedidas durante sua
vigéncia, permaneceréo em vigor pelo perfodo de duragdo dessas
garantias, o que, em nenhuma hipdtese, deverA ultrapassar, em 20
anos, a dentincia do Acérdo.

IN WITNESS WHEREOF, the Em Fé po quz, os Plenipoten-
undersigned _Plenipotentiaries _cidrios infra-assinados firmaram
have signed the present Agree- 0 presente Acérdo e néle apu-
ment and affixed thereto their  seram seus respectivos selos.
seals. Ferro na cidade de Washing-

Done in duplicate at Wash- ton, em dois exemplares, nas
ington, in the English and linguas inglésa e portuguésa,
Portuguese languages, both texts © ambos igualmente auténticos, aos
equally authentic, this 6th day seis dias do més de fevereiro de
of February, 1965. 1965.

FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA
PELO GOVERNO DOS ESTADOS UNIDOS DA AMBRICA:

Davin E. Brn

FOR THE GOVERNMENT OF: THE UNITED STATES OF BRAZIL:
PELO GOVERNO DOS ESTADOS UNIDOS DO BRASIL:

Jvuracy MacanHizs

[RELATED NOTES]

Rio pz Janno,
Ne. 564 February 8, 1968.

EXcELLENCY:

I have the honor to refer to the Investment Guaranty Agreement
between our two Governments signed in Washington February 6,
1965, and to confirm the following understandings reached as a result
of consultations in accordance with Article IV, Paragraph 2 of the
Agreement:

(A). As used in the said Article IV, Paragraph 2, surplus shall be
deemed to be that amount in excess of twice the total cruzeiro ex-
penditures.in Brazil of agencies of the Government of the United
States during the preceding three-month period.

(B) Such surplus amounts shall be deposited for the account of the
Government of the United States of America in the Banco do Brasil
S.A. or such other official financial institution as may be mutually
agreed.

(C). Such deposits may be withdrawn by the Government of the
United States of America within: three days after a request for with-
drawal.

TIAS ‘682T


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 6327

Lv

INVESTMENT GUARANTIES

Agreement Between the

- UnireraSnates: oF AMEmica:
and BraziL

Signed at Washington Febmary 6, 1965
with

Related Notes



apf

MINISTERIO DAS RELACOES EXTERIORES

DPF/DAI/DAS/219/550.31(22) Em 2 DE SETEMBRO DE 1965.

Senuor EmBalxapor,

Tenho a honra de informar Vossa Exceléncia de que o Congresso
Nacional aprovou o Acérdo sébre Garantia de Investimentos, firmado
entre nossos dois Governos em 6 de fevereiro de 1965, pelo Decreto
Legislativo n® 69, de 15 de julho de 1965, publicado no Diério Oficial
de 19 do mesmo més, nos seguintes térmos:

Decreto Legislativo n° 69, de 1965.

Aprova o Acérdo de Garantie de Investimentos entre os Estados
Unidos do Brasil e os Estados-Unidos da América; assinado em
Washington em 6 de fevereigo de 1965.

Art. 1° — Fica aprovado o ‘Aéérdo de Garantia de Investimentos
entre os Estados Unidos do Brasil e os Estados Unidos da América,
assinado em Washington, em 6 de fevereiro de 1965.

‘Art. 2° — Ressalva-se que por denegagao de justiga, nos térmos
do art. VI, § 3°, se entendes.a ingxisténcia de. tribunais. regulares,
ou de vias normais-de acesse 4, jawtige; a recusa de-julgar, de parte
da autoridéde competente; o retardamento- injustificavel da deciséo
judicial, com violagio da lei processual interna;

‘Art, 3° — Bste Decreto Legislativo entra em vigor na data de sua
publicagdo,

Art. 4° - Revogam-se as disposigées em contrério.

2. Por conseguinte, foram satisfeitas as formalidades constitucionais
no Brasil, nos térmos do art. VII do referido Acérdo.

Aproveito a oportunidade pare-renovar a Vossa Exceléncia os
protestos da minha, mais alta consideragao. .

V. pa Cunna

A Sua Exceléncia o Senhor Lincotn Gorpon,
Embaizador dos Estados Unidos da América.

Translation
DPF/DAI/DAS/219/550.31(22) SuPremBEr 2, 1965

Mr. AMBASSADOR,

T have the honor -to inform Your Excellency that the National
Congress approved the Investment Guaranty Agreement signed by
our two Governments on February 6, 1965, by Legislative Decree

TIAS. 6327


10

Queira aceitar, Exceléncia, os reiterados protestos de minha mais
alta consideracdo.

(Lincotw Gorpon)
Embaizador dos Estados Unidos da América”

2. Em resposta, apraz-me informar Vossa Exceléncia de que o
Govérno dos Estados Unidos do Brasil concorda com os térmos indi-
cados, e considera que a presente nota e a de Vossa Exceléncia, acima
transcrita, constituem ajuste entre os nossos dois Governos, o qual
entraré em vigor na data em que passar a vigorar o Acérdo de Garan-
tia de Investimentos.
' Aproveito a oportunidade para renovar a Vossa Exceléneia os pro-
testos da minha mais alta consideragdo.

V. pa Cunna

A Sua Exceléncia o Senhor Lincotn Gorpox,
Embaiaador dos Estados Unidos da América.

© i . Franslation

MINISTRY OF FOREIGN AFFAIRS”

DPF /DAI/DAS/34/850,31(22) Fesrvary 8, 1965

Mr. AMBASSADOR:
I have the honor to acknowledge receipt of Your Excellency’s note
No. 554, dated February 8, 1965, reading as follows:

{For the English language text of the note, see ante, p. 8.]

2. In reply, I take pleasure in informing Your Excellency that the
Government of the United States of Brazil is in agreement with the
terms indicated, and considers that this note and that of Your Excel-
lency, transcribed above, constitute an agreement between our two
Governments which will enter into force on the date on which the
Investment Guaranty Agreement becomes effective.

I take this opportunity to renew to Your Excellency the assurances
of my highest consideration.

V. pa Cunna
His Excellency
Lincotn Gorpon,

Ambassador of the United States
of America.

TIAS 6827

é
“ei
3,3


7

matéria de Direito Internacional Publico, sera submetida a- arbitra-
mento de acérdo com o paragrafo 4 déste Artigo.

3. Serdo excluidas das negociagées e do procedimento arbitral aqui
contemplados, os assuntos que permanegam exclusivamente dentro
da jurisdigéo interna de um Estado Soberano. Em conseqiiéncia,
fica entendido que reivindicagoes decorrentes de desapropriagdo de
bens de investidores privados estrangeiros néo apresentam questdes
de Direito Internacional Publico a ndo ser e até que 0 processo
judicial do Pats Recipiente tenha sido exaurido e se configure uma
denegacdo de justiga, na forma em que tais térmos s&o definidos no
Direito Internacional Pablico. O valor em dinheiro de qualquer
reivindicagéo submetida para negociagéo ou arbitramento nos térmos
déste Acérdo, néo dever&-exceder & importdncia da compensagio
paga por férca de garantias concedidas, em conformidade com éste
Acérdo, com relagéo ao investimento objeto da reivindicacao.

4. Questées surgidas nos térmos dos pardgrafos 1, 2 e 3 déste Artigo
serdo submetidas, a pedido de qualquer dos Governos. a um tribunal
arbitral que se pautard pelos principios do Direito Internacional
Publico, reconhecidos nos Artigos 1 e 2 do Tratado Geral Inter-
americano de Arbitramento, assinado em Washington, em 5 de
janeiro de 1929. Sdmente os respectivos Governos podem requerer 0
processo arbitral e do’ mesmo participar. A escholha de drbitros e o
método de seu procedimento obedecero ao disposto nos Artigos 3, 4,
5 e6 do Tratado Geral de Arbitramento. de 1929. O carater final das
decisées do Tribunal Arbitral e o método para a sua interpretagdo
deverado obedecer as disposigées do Artigo 7 daquele Tratado.

ARTIGO VII

O presente Acérdo entraré em vigor na data do recebimento da
nota pela qual o- Govérno dos Estados Unidos do Brasil comunicar
ao Govérno dos Estados Unidos da América que o mesmo foi aprovado,
segundo as disposigdes constitucionais do Brasil.

ARTIGO VOI

Se qualquer dos Governos Signatarios considerar que um ajuste
multilateral, em que possam vir a participar ambos os Governos,
dispée sbre um mecanismo para operacdo de um programa de garantia
de investimento semelhante ao previsto no presente Acérdo, poder&
solicitar a concordancia do outro Govérno para pdr térmo ao presente
Acérdo. Neste caso, a vigéncia deste Acérdo cessaré na data do
recebimento da nota que expresse aquela concordancia, a menes que
se concorde em outro procedimento.

ARTIGO IX

A nao ser que sua vigéncia cesse nos térmos do Artigo VIII, o pre-
sente Acérdo continuara em vigor até seis meses a partir da data do
recebimento da nota pela qual um Govérno informe o outro de sua
intengao de ndo mais participar do mesmo. Neste caso, as disposigées

TIAS 6827


3

investments like those of the subrogating investor, and such amounts
and credits shall be freely available to the Guaranteeing Government
to meet.its expenditures in the Recipient Country.

2. Whenever economic circumstances indicate the advisability of
holding the surplus over expenditures referred to in the preceding
paragraph of such currency and credits in a mutually agreed financial
institution, the two Governments will consult concerning appropriate
actions to be taken.

ARTICLE V

Nothing in this Agreement shall grant to the Guaranteeing Govern-
ment other rights than those available to the subrogating investor with
respect, to any petition or claim or right to which the Guaranteeing
Government may be subrogated.

ARTICLE VI

1, Differences between the two Governments concerning the in-
terpretation of the provisions of this Agreement shall be settled, inso-
far as possible, through negotiations between them. If such a difference
cannot be resolved within a period. of six months following the-request
for such negotiations, it hall be submitted, at. the request of.either
Government, to arbitration -in accordance with. paragraph..4.,of, this
Article. : ‘

2. Any claim against either Government concerning an invest-
ment guaranteed in accordance with this Agreement, which may
constitute a matter involving public international law, shall, at the
request of the Government presenting the claim, be submitted to
negotiations. If at the end of six months following the request for
negotiations the two Governments have not resolved ‘the’ claim by
muttal igreement, tha’claim, intlrding the question of’ Wwhéther it
constitutes a‘ matter involving public international law, shalt be sub-
mitted to arbitration in accordance with paragraph 4 of this Article.

3. There shall be excluded from the negotiations and the arbitral
procedures herein contemplated ‘matters which remain exclusively
within the internal jurisdiction of a sovereign state. It is accordingly
understood that claims arising out of the expropriation of property
of private: foreign ‘investors :do: not. present questions ef publie: in-
tarmational law: unless and until the judicial.process of the Regipiant
Country has been exhausted, and there exists a denial of justice, as
those terms are defined in public international law. The monetary
amount of any claim submitted for negotiation or arbitration in
accordance with the provisions of this Agreement shall not exceed
the amount of compensation paid under guaranties issued in accord-
ance with this Agreement with respect to the investment involved
in the claim.

4. Matters arising under paragraphs 1, 2 and 3 of this Article
shall be submitted at the request of either Government to an arbitral
tribunal which shall be guided by the principles of public international
law recognized in Articles 1 and 2 of’ the General Inter-American

TIAS 6327


14

or normal means of access to justice; the refusal to render judgment
on the part of competent authority; unjustifiable delay in rendering
judicial decision in violation of internal procedural law.

3. The Senate approved the reservation of the Chamber with the
following amendment underlined below:

Save that, for purposes of arbitration, by denial of justice according
to the terms of Article VI, para 3 is understood: “the nonexistence of
regular courts or of normal means of access to justice; the refusal to
render judgment on the part of competent authority; unjustifiable
delay in rendering judicial decision in violation of internal procedural
law.

4. The Chamber of Deputies, on examining the Senate amendment:
rejected it, the statement made on the floor of the Chamber regarding
the amendment having emphasized that the emendment ‘was super-
fluous and redundant since the reservation originating in the Chamber
referred only to arbitration.

5. In these circumstances, the Government of Brazil understands
that the effects of the reservation are restricted to the process of
arbitration provided for in Article V1 of the Agreement, which will be
subject to the limitations contained ‘in' the reservation. However,
the reservation does not affect the process. of negotiations provided
for in the Agreement.

I take this opportunity to renew to Your Excslleney the assoratices
of my highest consideration.

V. pa Cunna

His Excellency
Lrncotn Gorpon,
Ambassador of the United States of America.

No, 258 Rio pe Janztro, September 17, 1965

EXcELLENCY:

I have the honor to acknowledge receipt of Your Excellency’s
Notes No. 219, dated September: 2, 1965, and No. 234,.dated Sep-
tember 16, 1965, and to inform Your Excellency that in accordance
with Paragraph ‘5 :of the second of the Notes referred to: above, the
Government of the United States accepts the reservation on the
understanding that it is restricted to the scope of the arbitration
provisions of the Agreement, and does not affect the scope of the
negotiations provided for in the Agreement. This acceptance is
without prejudice to the position of the United States Government
with respect to the interpretation of the term “denial of justice’ as
a principle of international law. As.was pointed out by representatives
of the United States Government in the course of the negotiations
leading to the conclusion of the Agreement, the Government of
the United States holds to the position that this term has a broader

TEAS. 6327



Agree as follows:

ARTICLE I

When nationals of one Signatory Government propose to make
investments, guaranteed pursuant to this Agreement, in a project
or activity within the territorial jurisdiction of the other Signatory
Government, the two Governments shall, upon the request of either,
consult respecting the project or activity and its contribution to
economic and social development.

ARTICLE II

The provisions of this Agre hall be applicable only with
respect to guaranteed investm rojects or activities approved
for guaranty: purposes by. the Government; in .whose- territory., the
project. or activity will take place (hereafter, referred to as “the
Government of the Recipient Country’). The Government issuing
guaranties pursuant to this Agreement (hereafter referred to as
“the Guaranteeing Government’) shall keep the Government of the
Recipient Country currently informed on the types of investment
guaranties it is prepared to issue, on the criteria it employs in de-
termining whether to issue guaranties, as well as on the types and
amounts of guaranties issued for projects or activities approved by
the Government of the Recipient Country.

ARTICLE IIT

1. If the Guaranteeing Government makes payment in its na-
tional currency to any investor under a guaranty issued pursuant to
the present Agreement, the Government of the Recipient Country
shall, subject to the provisions of the following paragraph, recognize
the transfer to the Guaranteeing Government of any currency,
credits, assets, or investment on account of which such payment is
made, as well as the succession of the Guaranteeing Government to
any right, title, claim, privilege, or cause of action existing, or which
may arise, in connection therewith.

2. To the extent that the laws of the Recipient Country partially or
wholly prevent the acquisition of any interests in any property within
its national territory by the Guaranteeing Government, the Govern-
ment of the Recipient Country shall permit such investor and the
Guaranteeing Government to make appropriate arrangements pur-
suant to which such interests are transferred to an entity permitted to
own such interests under the laws of the Recipient Country.

ARTICLE IV

1, Amounts in the lawful ewrrency of the Recipient Country and
credits thereof acquired by the Guaranteeing Government, as subro-
vee in accordance with the provisions of the preceding Article, shall be
accorded treatment neither less nor more favorable than that accorded
to funds of nationals of the Guaranteeing Government deriving from

TIAS 6327


BRAZIL

Investment Guaranties

Agreement signed at Washington February 6, 1965;
With related notes of February 8, September 2, 16, and 17, 1965;
Entered into force September 17, 1965.

INVESTMENT GUARANTY’ AGREEMENT’ BETWEEN: THE
GOVERNMENT: OF' THE UNITED’ STATES OF AMERICA
AND THE GOVERNMENT OF THE UNITED STATES OF
BRAZIL

The Government of the United States of America and the Govern-
ment of the United States of Brazil,

Recalling the fourth fundamental objective of the Alliance for
Progress as stated in the Charter of Punta del Este—|'}

“To accelerate the process of rational industrialization so as to
increase the productivity of the economy as a whole, taking full
advantage of the talents and energies of both the private and
public sectors, utilizing the natural resources of the country and
providing productive and remunerative employment for unem-
ployed or part-time workers”,

Recalling that the National Development Programs called for by
the said Charter include—

“Promotion through appropriate measures . . . of conditions
that will encourage the flow of foreign investments and help to
increase the capital resources of participating -countries in need of
capital”, :

Considering that both Governments believe that the attainment
of these objectives would be facilitated through establishing among
the members of the Alliance a uniform system of investment guaranties,

‘Desiring to encourage private participation in the development of
economic resources and productive capacity through investment
guaranties issued by the country of the investor, and to enhance the
possibilities of multilateral arrangements on this subject,

1 Department of State Bulletin, Sept, 11, 1961, p. 462,

83-518-—67 (1) TIAS 6327



12

No. 69, of July 15, 1965, published in the Didrio Oficial of July 19,
1965, in the following terms:

Legislative Decree No. 69, of 1965.

Approving the Investment Guaranty Agreement between the
United States of Brazil and the United States of America, signed in
Washington on February 6, 1965.

Article 1. The Investment Guaranty Agreement between the
United States of Brazil and the United States of America, signed in
Washington on February 6, 1965, is hereby approved.

Article 2. Reservation is made that “denial of justice,” as used in
Article VI para (3), is understood. to mean: the nonexistence of regular
courte or of normal means of access. to-justice; refusal to judge on the
part of the competent authority; unjustifiable delay in judicial deci-
sion in violation-of domestic procedural law.

Article 3. This legislative decree enters into force on the date of its
publication.

Article 4. All provisions contrary to this decree are hereby revoked.

2. Accordingly; the constitutional formalities of Brazil, in the terms
of Anticle VII ofsthe-vited Ayreement, have beer satisfied...

I take this opportunity to renew to. Your Excelieney the assurances
of my highest consideration. -

V. pa Cunna
His Excellency
Lincotn Gorpon,
Ambassador of the United States of America.

MINISTERIO D&S RELACOES EXTERIORES

DPF/DAI/DA8/284/580.31(22) Em 16 DE SETEMBRO DE 1965.

Senzor Emparxapor,

Tenho a honra de levar ao conhecimento de Vossa Exceléncia que
o Govérno brasileiro registrou com satisfacao a concluséo do processo
legislative que conduziu & aprovagéo.do Acérdo de Garantia de
Investimentos entre os Estados Unidos da América e os Estados
Unidos do Brazil de 6 de fevereiro de 1965, cuja ratificagdo tive a
oportunidade de comunicar pela nota n° DPF/DAI/DAS/219/550.31
(22), de 2 de setembro do corrente ano.

2. A propésito, informo Vossa Exceléncia de que a Camara dos
Deputados aprovou o referido Acérdo com uma ressalva ao Art.
6°, paragrafo 3°, nos seguintes térmos:

Decreto Legislativo n° 69, de 1965.

Art, 2°— Ressalva-se que por denegagdo de justiga, nos térmos do
Art. 6°, §3°, se entende: a inexisténcia de tribunais re-
gulares, ou de vias normais de acesso A justica; a recusa

TIAS 6827


15

scope than the definition set forth in the reservation made by the
Brazilian Congress.

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

Lincotn Gorpon

His Excellency
Vasco T. Lzrrio pa Cunna,
Minister of Foreign Affairs,
Rio de Janeiro.

= TIAS 6327

‘ 1.8, GCVERNMENT PRINTING OFFICE: 1967