TREATIES AND OTHER IATBilKA'ATJONAS, ACTS SERIES 4275

GUARANTY OF PRIVATE INVESTMENTS

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Effected by Exchange of Notes

Signed at Helsinki July 22, 1959

Agreement Between the

United States of America

and Finland
TREATIES AND OTHER IATBilKA'ATJONAS, ACTS SERIES 4275

GUARANTY OF PRIVATE INVESTMENTS

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Effected by Exchange of Notes

Signed at Helsinki July 22, 1959

Agreement Between the

United States of America

and Finland
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[Literal print]

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Vor sale by the Superintendent of Documents, U.S. Government Printing Office

Washington 25, D.C. : Price 5 cents

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DEPARTMENT OF STATE
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[Literal print]

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DEPARTMENT OF STATE
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FINLAND

Guaranty of Private Investments

Helsinki, July 1951)

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’ 68 Stat. 847; 22 U.S.C. § 1933(b) (4).

44481—59 (1) TIAS 4275

The American Ambassador to the Finnish Minister jor Foreign

Affairs

A^cement Reeled by exchange of notes

Signed at Helsinki July 22, 1959;

Entered into force July 22, 1959.

No. 15

Excellency :

I have the honor to refer to conversations which have recently taken

place between representatives of our two Governments, relating to

guaranties authorized by Section 413 (b) (4) of the Mutual Security

Act of 1954, p] as amended. I also have the honor to confirm the

following understandings reached as a result of these conversations:

1. The Governments of the Republic of Finland and the United

States of America will, upon the request of either of them, consult

respecting projects in Finland proposed by nationals of the United

States of America with regard to which guaranties under Section

413 (b) (4) of the Mutual Security Act of 1954, as amended, have

been made or are under consideration.

2. The Government of the United States of America agrees that

it will issue no guaranty with regard to any project unless it is approved by the Government of the Republic of Finland.

3. With respect to such guaranties extending to projects which are

approved by the Government of the Republic of Finland in accordance with the provisions of the aforesaid Section 413 (b) (4), the

Government of the Republic of Finland agrees:

a. That if the Government of the United States of America makes

payment in United States dollars to any pereon under any such

guaranty, the Government of the Republic of Finland will recognize the transfer to the United States of America of any

right, title or interest of such person in assets, currency, credits,

or other property on account of which such payment was made
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States of America of any right, privilege, or interest, or any

part thereof, that such nationals may be granted or become

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TIAS- 4275

and the subrogation of the United States of America to any

claim or cause of action, or right of such person arising in connection therewith.

b. That Finnmark amounts acquired by the Government of the

United States of America pursuant to such guaranties shall be

accorded treatment not less favorable than that accorded to private funds arising from transactions of United States nationals

which are comparable to the transactions covered by such guaranties, and that such Finnmark amounts will be freely available

to the Government of the United States of America for administrative expenditures.

c. That if the Government of the United States of America issues

guaranties to cover losses by reason of war with respect to investments in Finland the Government of the Republic of Finland agrees that nationals of the United States of America to

whom such guaranties have been issued, will be accorded by the

Government of the Republic of Finland treatment 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 payment, including the distribution of reparations received from enemy

countries, that the Government of Finland may make or pay

for losses incurred 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 the Republic of Finland will recognize the transfer to the United

entitled to as a result of the aforementioned treatment by the

Government of the Republic of Finland.

d. That any claim against the Government of the Republic of Finland to which the Government of the United States of America

may be subrogated as a 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. This sub-paragraph (d) shall not be applicable to

the type of guaranties provided for in sub-paragraph (c), immediately above.

Upon receipt of a note from Your Excellency indicating that the

foregoing provisions are acceptable to the Government of the Repub-
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John D. Hickerson

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Helsinki, July 1969.

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TIAS 4275

MINISTfiRE DES AEFAIRES fiTRANQfeRES

DE FINLANDE

ZAe Finnish Minister for Foreign Affairs to the American

Amiassador

lie of Finland, 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 assurance of my highest consideration.

His Excellency

Ralf Torngren, Minister for Foreign Affairs.,

Helsinki.

N? 37052

Your Excellency,

I have the honour to acknowledge the receipt of your Note No. 15

ofJuly 22,1959, which reads as follows:

“Excellency:

I have the honour to refer to conversations which have recently

taken place between representatives of our two Governments, relating to guaranties authorized by Section 413 (b) (4) of the Mutual

Security Act of 1954, as amended. I also have the honour to confirm the following understandings reached as a result of thes'e

conversations:

1. The Governments of the Republic of Finland and the United

States of America will, upon the request of either of them, consult

respecting projects in Finland proposed by nationals of the United

States of America with regard to which guaranties under Section

413 (b) (4) of the Mutual Security Act of 1954, as amended, have

been made or are under consideration.

2. The Government of the United States of America agrees that it

will issue no guaranty with regard to any project unless it is approved by the Government of the Republic of Finland.

3. With respect to such guaranties extending to projects which are

approved by the Government of the Republic of Finland in accordance with the provisions of the aforesaid Section 413 (b) (4), the

Government of the Republic of Finland agrees:

a. That if the Government of the United States of America

makes payment in United States dollars to any person under

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TIAS 4275

any such guaranty, the Government of the Republic of Finland will recognize the transfer to the United States of America of any right, title or interest of such person in assets, currency, credits, or other property on account of which such

payment was made and the subrogation of the United States

of America to any claim or cause of action, or right of such

person arising in connection therewith.

b. That Finnmark amounts acquired by the Government of the

United States of America pursuant to such guaranties shall be

accorded treatment not less favorable tlian that accorded to

private funds arising from transactions of United States nationals which are comparable to the transactions covered by

such guaranties, and that such Finnmark amounts will be

freely available to the Government of the United States of

America for administrative expenditures.

c. That if the Government of the United States of America issues guaranties to cover losses by reason of war with respect

to investments in Finland the Government of the Republic

of Finland agrees that nationals of the United States of America to whom such guaranties have been issued, will be accorded

by the Government of the Republic of Finland treatment 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 payment, including the distribution of reparations received from enemy countries, that the Government of Finland

may make or pay for losses incurred 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 the Republic of Finland will 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 the Republic of Finland.

d. That any claim against the Government of the Republic of

Finland to which the Government of the United States of

America may be subrogated as a 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 wlio may be designated

by the President of the International Court of Justice at the

request of either Government. This sub-paragraph (d) shall
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Ralf Torngken

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His Excellency

Mr. John D. Hickerson,

Am/^assador of the

United States of America^

Helsinki.

not be applicable to the type of guaranties provided for in

sub-paragraph (c), immediately above.

Upon receipt of a note from Your Excellency indicating that the

foregoing provisions are acceptable to the Government of the Republic of Finland, 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 assurance of my highest consideration.”

I have the honour to confirm to you that the provisions set forth in

the said Note are acceptable to the Government of Finland and that

it is agreed that your Note and this reply constitute an agreement

between our two Governments on this subject, the agreement to enter

into force on the date of receipt of this note.

I avail myself of this opportunity to present to Your Excellency

the assurance of my liighest consideration.

TIAS 4275

U.S. GOVERNMENT PRINTING OFFICgi 1959