fiwarlp.. Ard

In’ witness whereof, the undersigned, duly ‘authorized
thereto” by their respective Governments: have signed this
Agreement . . 7 ott

oot Done at Kuvait in : auplicate): on the 19th of Ramadhan “1409
H, corresponding’ to the 24th of- April-1989, in the Arabic and
English languages, both texts being equally authentic.

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE
THE STATE OF KUWAIT UNITED STATES OF AMERICA

tdlem Welbecvee! Hered

JASSIM MOHAMED AL-KHARAFI WILSON NATHANIEL HOWELL

MINISTER OF FINANCE AMBASSADOR OF THE UNITED
STATES OF AMERICA IN
KUWAIT



appointments. If the President of the International Court
of Justice happens to be 4 national of either State or if
the -is otherwise prevented from discharging the said
function, the Vice-President shall be invited to make the
appointment or appointments, .If the Vice-President also
: chappéng-\to be a national: of, either state, or is pre nted .

fram discharging the. said functioh , the ‘member of: the.
“International Court of Justice next in seniority who ‘is

not a national of either State shall be invited to make
the appointment or appointments. .

(ii) The Arbitral Tribunal shall base its decision on the
applicable principles and rules of public international
law. The Arbitral Tribunal shall decide by majority vote.
Its decision shall be final and binding.

(iii) Each of the Governments shall pay the expense of its
arbitrator 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.

ARTICLE 8

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 denunciation of the
Agreement.

ARTICLE 9

This Agreement shall enter into force on the date of the
note by which the Government of the State of Kuwait notifies the
Government of the United States of America that its
constitutional procedures have been fulfilled . -



< AGREEMENT ON INVESTMENT GUARANTIES
- , BETWEEN. -THE GOVERNMENT OF THE
. UNITED STATES OF AMERICA: AND . THE
. GOVERNMENT OF THE STATE OF KUWAIT

The Government of the United States of America and the
Government of the State of Kuwait,

Desiring to strengthen economic co-operation between their
countries, and in particular to promote the participation by
U.S. private enterprises in projects bringing new and advanced
technology to the State of Kuwait ; and .

Recognizing the importance of investment guaranties for the
encouragement of investments ;

Have agreed as follows:-

ARTICLE 1

As used herein, the term "coverage" shall refer to any
investment insurance, reinsurance or guaranty which is issued in
accordance with this Agreement by the Overseas Private
Investment Corporation ("OPIC") , by any successor agency of the
United States of America or by any other entity or group of
entities, pursuant to arrangements with OPIC or any successor
agency, all of whom are hereinafter deemed included in the term
"Issuer" to the extent of their interest as insurer, reinsurer,
or guarantor in any coverage, whether as a party or successor to
a contract providing coverage or as an agent for the
administration of coverage.

ARTICLE 2

The procedures set forth in this Agreement shall apply
only with respect to coverage relating to projects or activities
registered with or otherwise approved. by the Government of the
State of Kuwait or to coverage relating to projects with respect
to which the Government of the State of Kuwait or any agency or
Political subdivision thereof, has entered into a contract
involving the provision of goods or services, -or invited
tenders on such a contract . :



Keeshie

ARTICLE 3

(A) If the .Issuér makes payment to any party under
coverage, . the Government of the State of Kuwait shall, subject
to the ‘provisions of Article 4 hereof,~ recognize the transfer‘
to the Issuer of-any. currency, credits, assets, or investment on
account of which payment.under such coverage is made as well as
the succession. of the Issuer to vany:-right, title, claim,
privilege, or cause of action existing, or which ‘may arise, in
connection therewith.

(B) The Issuer shail assert no greater rights than those
of the transferring party under coverage with respect to any
interests transferred or succeeded to under this Article.
Nothing in this Agreement shall limit the right of the
Government of the United States of America to assert a claim
under international law in its sovereign capacity, as distinct
from any rights it may have as Issuer.

(c) The issuance of coverage outside of the State of
Kuwait with respect to a project or activity in the State of
Kuwait shall not subject the Issuer to regulation under the laws
of the State of Kuwait applicable to insurance or financial
organizations.

ARTICLE 4

To the extent that the laws of the State of Kuwait
partially or wholly invalidate or prohibit the acquisition from
a party under coverage of any interest in any property. within
the territory of the State of Kuwait by the Issuer, the
Government of the State of Kuwait shall permit such party and
the Issuer to make appropriate arrangements pursuant to which
such interests are transferred to an entity permitted to own
such interest under the laws of the State of Kuwait.

ARTICLE 5

Amounts in the lawful currency of the State of Kuwait,
including credits thereof, acquired by the Issuer by virtue of
such coverage shall be accorded treatment by the Government of
the State of Kuwait no less favorable as to use and conversion

“than the treatment to which such funds would be entitled in the

hands of the party under coverage. . Such amounts and credits may
be transferred by the Issuer to any person or entity and upon
such transfer shall be freely available for use by such person

or entity in the territory of the State of Kuwait.

-2-+



~ ARTICLE: 6°

The two. Governments,. desiring reciprocity, agree that, in
the event the Government of the State of Kuwait or any of its
agencies or institutions are authorized under law to issue
coverage. for; investments of any Kuwaiti investors in. any. project

‘ or “activity. within the United States of America’ under a program ~
‘similar, in substance’to the investment guaranty program ‘to Which

the Agreement relates, provisions equivaient to those of this
Agreement shall apply with respect to Kuwaiti investments in the
United States of America, upon an exchange of notes to be made
at the initiative of either Government and enactment of any
implementing legislation required under the laws of the State of
Kuwait or the United States of America.

ARTICLE 7

: (A) Any dispute between the Government: of the’ United
States of America and the Government of the State of Kuwait
regarding the interpretation or the application of this
Agreement shall be resolved, insofar as possible, through
negotiations between the two governments. If at the end of
three months following the request for negotiations the two
Governments have not resolved the dispute by agreement, the
dispute, including the question of whether the dispute presents
a question of interpretation or application of this Agreement,
shall be submitted, at the initiative of either Government, to
an Arbitral Tribunal for resolution in accordance with article
7(B).

(B) The Arbitral Tribunal for resolution of disputes
pursuant to article 7(A) shall be established and function as
follows:

(i) Each Goverment shall appoint one arbitrator; these two
arbitrators shall designate a president by common
agreement who shall be a citizen of a third state having
diplomatic relations with both Governments and be
appointed by the two Governments. The arbitrators shall
be appointed within two months and the president within
three months of the date of receipt of either Government's
request for arbitration. If the appointments are not made
within the foregoing 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

-3-