3

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. [7]

Dons, in duplicate, at Georgetown this 29th day of May 1965 in
the English language.

For the Government of the United States
of America
Detar R. Carison

Delmar R. Carlson, Counsel General of
the United States of America

For the Government of British Guiana
Perer D’Aquiar

The Honorable Peter D’Aguiar,
Minister of Finance

J Henry Tuomas

The Honorable J. Henry Thomas
Minister of Economie Affairs

> Aug. 18, 1965.

TIAS 5942

U.S GOVERNMENT PAINTING OFFICE: 1968


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 5942

INVESTMENT GUARANTIES

Agreement Between the
Unitep STaTES OF AMERICA
and British GUIANA

Signed at Georgetown May 29, 1965

ny


BRITISH GUIANA

Investment Guaranties

Agreement signed at Georgetown May 29, 1965;
Entered into force August 18, 1965.

INVESTMENT GUARANTY AGREEMENT

The Government of the United States of America (the “Guaran-
ieeing Government”) and the Government of Britih Guiana (the
“Fost Government”) ;

Seeking to encourage private investments in projects which will
contribute to the development of British Guiana’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
avest 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 British Guiana.
9, The -procedures set- forth in this Agreement shall apply only
with respect to: guaranteed investments in projects or activities
approved by the Host Government.

3. Ifthe Guaranteeing Government makes payment to any investor
under a guaranty issued pursuant to the present Agreement, the Host
Government shall, subject to the provisions of the following para-
graph, recognize the transfer to the Guaranteeing Government of any
currency, credits, assets, or investment on account of which payment
under such guaranty is made as well as the succession of the Guarantee--
ing 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 by 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 Govern-
‘nent; shall assert no greater rights than those of the transferring

710-225-668 (4) TIAS 5942


2

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. Amounis 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
expenditures in the national territory of the Host Government.

6. (a) Differences 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. 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 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 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 foregoing time limits
are not met, 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 ‘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 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 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
accordance with this Agreement, against either of the two Govern-
ments, 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 negotiation. 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 for settlement to an arbitral tribunal selected in

TIAS 5942