4

may succeed as transferee or which may arise from the events causing
payment under an investment guaranty shall, upon the request of
either Government, be the subject of negotiations between the two
Governments and shall be settled, insofar as possible, in such negotia-
tions. If, within a period of three months after a request for negotia-
tion, the two Governments are unable to settle any dispute or claim
by agreement, the dispute or claim shall be referred upon the initiative
of either Government, to a sole arbitrator, selected by mutual agree-
ment, for final and binding determination in light of the applicable
principles of international law. Tf the two Governments are unable
to select an arbitrator within a period of three months after indica-
tion by either Government of its desire to arbitrate, the President of
the International Court of Justice shall, at the request of either Gov-
ernment, designate the arbitrator.

Upon receipt of a note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of Cyprus, 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.” .

The proposals set out in the above-mentioned Note are acceptable

to the Government of the Republic of Cyprus and I have the honour

. therefore to confirm that your Note, together with this reply, shall
@ constitute an agreement accordingly.

Accept, Excellency, the renewed assurances of my highest

consideration,
Spyros Kyrrtanou
- (Spyros Kyprianou)
Minister of Foreign Affairs
His Excellency

Mr. Fraser Winxrss,
Ambassador of the United States
of America in Cyprus.

TIAS 5364 ¥.S, GOVERNMENT PRINTING OFFICR. 1883



CYPRUS

Investment Guaranties

Agreement effected by exchange of notes
Signed at Nicosia May 29, 1963;
Entered into force May 29, 1963.

Phe American Ambassador to the Cypriot Minister of Foreign Affairs
No. 788 Nicosta, Way 29,1963 .

EXcELLENCY :

Ihave the honor to refer to conversations which have recently taken
place between represent atives of our two governments relating to
investments in Cyprus which further the development of the economic
resources and productive capacities of Cyprus and to guaranties of
such investments by the Government of the United States of America.
Talso have the honor to confirm the following understandings reached
asa result of those conversations:

1. The Government of the United States of America and the Gov-
ernment of Cyprus shall, upon the request of either Government, con-
sult concerning investments in Cyprus which the Government. of the
United States of America may guaranty.

2. The Government of the United States of America shall not guar-
anty an investment in Cyprus unless the Government of Cyprus ap-
proves the activity to which the investment relates and recogn. that
the Government of the United States of America may guaranty such
investment.

8. If an investor transfers to the Government of the United States
of America pursuant to an investment guaranty, (a) lawful currency,
including credits thereof, of Cyprus, (b) any claims or rights which
the inv $s or may have arising from the business activities of
the investor in Cyprus or from the events entilling the investor to pay-

- ment under the investment guaranty, ov (c) all or part of the interest

of the investor in any property (real or personal, tangible or intang
ble) within Cyprus, the Government of Cyprus shall recognize such
transfer as valid ‘and effective.

4, Lawful currency of Cyprus, including credits thereof, which is
acquired by the Governmént of the United States of America pur-
suant to a transfer of currency or from the sale of property trans-

20-698—63 qa) TIAS 5364



2

ferred under an investment Suaranty shall be accorded treatment by
the Government of Cyprus with repect to exchange, repatriation or
use thereof, not less favorable than that accorded to funds of nationals
of the United States of America devived from activities similar to
those in which the investor had been engaged, and such currency may
in any event be used by the Government of the United States of
America for any of its expenditures in Cyprus.

5. Any dispute regarding the interpretation or application of the
provisions of this Agreement or any claim against the Government of
Cyprus to which the Government of the United States of America
may succeed as transferee or which may arise from the events causing
payment ulider an investment guaranty shall, upon the request of
either Government, be the subject of negotiations between the two
Governments and shall be settled, insofar as possible, in such negotia-
tions. If, within a period of three months after a request for negotia-
tion, the two Governments are unable to settle any such dispute or
claim by agreement, the dispute or claim shall be referred upon the
initiative of either Government, toa sole arbitrator, selected by mutual
agreement, for final and binding determination in light of the appli-
cable principles of international law. Tf the two Governments are
unable io select an arbitrator within a period of three months after
indication by cither Government of its desire to arbitrate, the Presi-
dent of the International Court of Justice shall, at the request of
either Government, designate the arbitrator,

Upon receipt of 2 note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of Cyprus,
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. :

Fraser Winxtys

His Excellency
Srrnos Kyrriayou,
ALinister of Foreign A, fairs,
Nicosia.

TIAS 5364


3
The Cypriot Minister of Foreign Affuirs 0 the Americun A mbassador

REPUBLIC OF CYPRUS
¥ OF FOREIGN AFF

MRS

No, B.19/2 Nicosta, 29¢h May, 1963

JEXCELLENCY,
JT have the honour to acknowledge receipt of your Note No. 788 of
99th May, 1963, which reads as follows:

«J have the honor to refer to conversations which have recently
taken place between representatives of our two governments yelating
to investments in Cyprus which further the development of the eco-
nomic resources and productive capacities of Cyprus and to guaranties
of such jnvestments by the Government of the United States of
America. I also have the honor to confirm the following under:
standings yeached as a yesult of those conversations:

4, The Government of the United Sates of America and the Gov-

¢ Cyprus shall, upon the request of either Government, con-
sult concerning investments in Cyprus which the Government of the
United States of America may guaranty.

9, The Government of the United States of ‘America shall not
guaranty an investment in Cyprus unless the Government of Cyprus
approves the activity to which the investment relates and recognizes
that the Government of the United States of America may guaranty
such investment.

3. If an investor transfers to the Government of the United States
of America pursuant to an jnvestment. guaranty, (a) Jawful currency,
including credits thereof, of Cyprus, (b) any claims ov rights which
the investor has or may have arising from the business acti ities of
the investor Cyprus or from the events entitling the investor to
payment under the ives ment guaranty, oF (c) all or part of the
interest. of the gnvestor in any property (real or personal, tangible
or intangible) yvithin Cyprus, the Government of Cyprus shall recog-
nize such transfer 83 valid and effective.

4, Lawful ewrency of Cypr
acquired by the Government of the United States of America pur-
suant to a transfor of currency or from the sale of property trans:
ferred under an investment guaranty shall be accorded treatment by
the Government of Cyprus with respect to exchange, repatriation or
use thereof, not Jess favorable than that accorded to funds of nationals
of the United States of America derived from activities similar to
those in which the investor had been engaged, and such currency may
in any event be used by, the Government of the United States of
America for any of its expenditures in Cyprus. .

5. Any dispute regarding the interpretation or application of the
provisions of this Agreement or any claim against (he Government of
Cyprus to which the Government of the United States of America

TAS 5364

jneluding credits thereof, which is -