resolved the claim by mutual agreement, the claim, including the
question of whether it presents a question of public international law,
shall be submitted for settlement to an arbitral tribunal selected in
accordance with paragraph (a) above. The arbitral tribunal shall
base its decision exclusively on the applicable principles and rules
of public international law. Only the respective Governments may
request the arbitral procedure and participate in it.

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 guaranties
issued while the Agreement was in force shall remain in force for
the duration of those guaranties, 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 Guaranteeing
Government that the Agreement has been approved in conformity
with the Host Government’s constitutional procedures.[{*]

Dower at Maseru, in duplicate, this 24th day of February 1967, in
the English language.

Leapua JONATHAN
For the Government of Lesotho

W B Hussey

For the Government of the United
States of America

‘Mar, 7, 1967.

TIAS 6227

U.S. GOVERNMENT PRINTING OFFICE: 1967


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 6227

INVESTMENT GUARANTIES

Agreement Between the
UnitTEep STATES OF AMERICA
and LEsorHo

Signed at Maseru
February 24, 1967



LESOTHO

Investment Guaranties

Agreement signed at Maseru February 24, 1967;
Entered into force March 7, 1967.

INVESTMENT GUARANTY AGREEMENT

The Government of the United States of America (the “Guarantee-
ing Government”) and the Government of Lesotho (the “Host
Government”) ;

Seeking to encourage private investments in projects which will
contribute to the development of Lesotho’s economic resources and
productive capacities through investment guaranties issued by the
Guaranteeing Government,

Have agreed as follows:

1. When nationals of the Guaranteeing Government propose to
invest with the assistance of guaranties issued pursuant to this Agree-
ment in a project or activity within the territorial jurisdiction of the
Host Government, the two Governments shall, upon the request of
either, consult respecting the nature of the project or activity and its
contribution to economic and social development in Lesotho,

2. The procedures set forth in this Agreement shall apply only
with respect to guaranteed investments in projects or activities
approved by the Host Government.

8. If the Guaranteeing Government makes payment to any in-
vestor under a guaranty issued pursuant to the present Agreement,
the Host Government shall, subject to the provisions of the follow-
ing paragraph, recognize the transfer to the Guaranteeing Govern-
ment of any currency, credits, assets, or investment on account of
which payment under such guaranty 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.

4. To the extent that the laws of the Host Government partially
or wholly invalidate the acquisition of any interests in any property
within its national territory hy the Guaranteeing Government, the
Host Government shall permit such investor and the Guaranteeing
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. The Guaranteeing

77-S82—67 qd) TIAS 6227


2

Government shall assert no greater rights than those of the trans-
ferring investor under the laws of the Host Government with respect
to any interests transferred or succeeded to as contemplated in para-
graph 3. The Guaranteeing Government does, however, reserve its
rights to assert a claim in its sovereign capacity in the eventuality of
a denial of justice or other question of state responsibility as defined
in international law.

5. Amounts in the lawful currency of the Host Government and
credits thereof acquired by the Guaranteeing Government under such
guaranties shall be accorded treatment neither less nor more favorable
than that accorded to funds of nationals of the Guaranteeing Govern-
ment deriving from investment activities like those in which the
investor has been engaged, and such amounts and credits shall be
freely available to the Guaranteeing Government to meet its expendi-
tures in the national territory of the Host Government.

6. (a) Diterences between the two Governments concerning the
interpretation of the provisions of this Agreement shall be settled,
insofar as possible, through negotiations between the two Govern-
ments. Ifsuch 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 ad hoc arbitral
tribunal for settlement in accordance with the applicable principles
and rules of public international law. The arbitral tribunal shall be
established as follows: Each Government shall appoint one arbitra-
tor; 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
foregoing time limits are not met, either Government may, in the
absence of any other agreement, request the President of the Inter-
national Court of Justice to make the necessary appointment or
appointments, and both Governments agree to accept such appoint-
ment or appointments. The arbitral tribunal shall decide by majority
vote. Its decision shall be binding. Each of the Governments shall
pay the expense of its member and its representation in the proceed-
ings 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 other regulations concerning the
costs. In all other matters, the arbitral tribunal shall regulate its
own procedures.

(b) Any claim, arising out of investments guaranteed in accord-
ance with this Agreement, against either of the two Governments.
which, in the opinion of the other, presents a question of public
international law 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

TIAS 6227