3

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, cither 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 appoint-
ment 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.
Only the two Governments may request the arbitral procedure and
participate in it.

(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.

7. This Agreement shall continue in force until six months from the
date of recipt 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.

8. This Agreement shall enter into force on the date of the note
by which the Host Government communicates to the Issuing Gov-
ernment 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 Sul-
tanate of Oman, 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 Agree-
ment to enter into force in accordance with paragraph 8.

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

Wituiam D. Woe
His Excellency
Qais App aL-Mun’IM AL-ZawawI,
Minister of State for Foreign Affairs,
Ruwi, Sultanate of Oman.

TIAS 8651


6

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 arbitra-
tor 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 denunciation 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.

Being the foregoing provisions acceptable to the Sultanate of
Oman Government, it is agreed that your Note together with this
reply constitute an Agreement between our two Governments on

~ this subject and that this Agreement will enter into force on the date

of this reply.
Accept, Your Excellency, the renewed assurance of my highest
considerations.
Q Av Zawawi

Qais -Al-Zawawi
Minister of State for Foreign Affairs

[sBaL}

Mr. Wituias D. Wouts,
<mbossador of the United States of America,

fuscat,
Sultanate of Oman.

TIAS 8651

8, GOVTRNMENT PRINTING OFPICHS 1977


2

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 transferred or succeeded to under this paragraph and
shall be subject to legal defenses assertable against the transferring
investor to the same extent as a transferee that is a private entity.
‘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
such 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. (a) Differences between the two Governments concerning the
interpretation 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, it 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 cither 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
Governments have not resolved the claim by mutual agreement, the
claim, including the question of whether it presents a question of
public international law, shall be submitted, at the request of either
Government, to an arbitral tribunal for resolution in accordance with
paragraph 6(c).

(c) The arbitral tribunal for resolution of disputes pursuant to
paragraphs 6(a) 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

TIAS 8651


4

The Omani Minister of State for Foreign Affairs to the American
Ambassador

SULTANATE OF OMAN
MINISTRY OF FOREIGN AFFAIRS
OFFICE OF THE MINISTER

Ref: 10/3/76/84 Muscat Sth. Sept. 1976
EXcELLENCY,

JT have the honour to refer to your Note Ref. No. 42 dated Sept. 9,
1976 concerning the conclusion of an Investment Guarantee Agree-
ment between the Government of the United States of America and
the Government of the Sultanate of Oman, and to confirm the result
reached on the subject as follows:-

1—When an investor proposes to invest in a project or activity
within the Sultanate of Oman, with the assistance of insurance of
guaranties (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 Government) and the Government of the Sultanate of
Oman (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 Government.

3—If the Issuing Government makes payment to any investor
under coverage issued pursuant to this Agreement, the Host Gov-
ernment shall, subject to the provisions of paragraph 4, recognize
the transfer to the Issuing Government of any currency, credits,
assets, or investment on account of which payment under such
coverage is made as well as the suecession of the Issuing Govern-
ment to any right, title, claim, privilege, or cause of action existing,
or which may arise, in connection therewith. The Issuing Govern-
ment shall assert no greater rights than those of the transferring
investor with respect to any interests transferred or succeeded to
under this paragraph and shall be subject to legal defenses assert-
able against the transferring investor to the same extent as a trans-
feree that is a private entity. 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 shal] permit such
investor and the Issuing Government to make appropriate arrange-

‘TIAS 8651


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 8651

INVESTMENT GUARANTIES

Agreement Between the
Unitep STaTEs or AMERICA
and OMAN

Effected by Exchange of Notes
Signed at Muscat September 9, 1976



5

ments pursuant to which such interests are transferred to an entity
permitted to own such 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—(a) Differences between the two Governments concerning the
interpretation 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, it shall
be submitted, 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 Jaw shall, at the request of the
Government presenting the claim, be submitted to negotiations.
If at the end of three months following the request for negotiations
the two Governments have not resolved the claim by mutual agree-
ment, the claim, including the question of whether it presents a
question of public international Jaw, shall be submitted, at the
request of either Government, to an arbitral tribunal for resolution
in accordance with paragraph 6(c).

(c) The arbitral tribunal for resolution of disputes pursuant to
paragraph 6(a) 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
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 appoint-
ment or appointments, and both Governments agree to accept such
appointment or appointments.

(i) 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

TIAS 8651



NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89-497, approved
July 8, 1966 (80 Stat. 271; 1 U.S.C. 113)—

“||, the Treaties and Other International Acts
Series issued under the authority of the Secretary of
State shall be competent evidence . . . of the treaties,
international agreements other than treaties, and proc-
lamations by the President of such treaties and inter-
national agreements other than treaties, as the case
may be, therein contained, in all the courts of law
and equity and of maritime jurisdiction, and in all the
tribunais and public offices of the United States, and
of the several States, without any further proof or
authentication thereof.”

For sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C. 20402. Subscription Price: $75 per year; $18.75 additional
for foreign mailing. Single copies vary in price. This issue 60 cents.


OMAN

Investment Guaranties

Agreement effected by exchange of notes
Signed at Muscat September 9, 19763
Entered into force September 9, 1976.

The American Ambassador to the Omani Minister of State for Foreign
Affairs

No. 42 SEPTEMBER 9, 1976

ExceLuencr:

T have the honor to refer to conversations which have recently taken
place between representatives of our two Governments relating to
investments in the Sultanate of Oman which promote the development
of the economic resources and productive capacities of the Sultanate
of Oman and to insurance and guaranties of such investments issued
as an incentive by the Government of the United States of America.
The agency of the Government of the United States of America
presently authorized to issue such insurance or guaranties is the
Overseas Private Investment Corporation. I also have the honor to
confirm the following understandings reached as a result of those
conversations:

1. When an investor proposes to invest in a project or activity
within the Sultanate of Oman, with the assistance of insurance or
guaranties (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 Gov-
ernment) and the Government of the Sultanate of Oman (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 Government.

3. If the Issuing Government makes payment to any investor
under coveragt ‘ssued pursuant to this Agreement, the Host Govern-
ment shall, subject to the provisions of paragraph 4, recognize the
transfer to the Issuing Government of any currency, credits, assets,
or investment on account of which payment under such coverage is

aT 26617 a) TIAS 8651