4

In reply I have the ‘honour to inform you that the Malaysian
Government confirms the understandings as set out in your letter
and will regard that letter and this reply as constituting an Agreement
between the Governments of Malaysia and of the United States of
America, the Agreement to enter into force on the date of this reply.

LT avail myself of this opportunity to renew to you, Your Excellency,
the assurances of my highest consideration.

Yours sincerely,

(TUN HAJTABDUL RAZAK BIN/DATO HUSSEIN )
Acting Prime Minikter and
Acting Minister of External Affairs,

Malaysia,
His Excellency
Mr. James Dunzar BEL,
Ambassador Extraordinary and
Plenipotentiary of the United States of America,
Kuala Lumpur.

TIAS 5850

ULE, GOVERNMEAT PRINTING OFFICE: 1968


4

shall be accorded treatment not less favourable than that.
accorded to private funds arising from transactions of United
States nationals which are comparable to the transactions
covered by such guaranties, and that such Malayan dollar
amounts will be freely available to the Government of the
United States of America for administrative expenditures.

c. That any claim against the Government of the Federation
of Malaya to which the Government of the United States of
America may be subrogated as a result of any payment under
such a guaranty, shall be the subject of direct negotiations be-
tween the two Governments. If within a reasonable period,
they are unable to settle the claim by agreement, it shall be
referred for final and binding determination to a sole arbi-
trator selected by mutual agreement. If the Governments
are unable, within a period of three months, to agree upon
such selection, the arbitrator shall be one who may be desig-
nated by the President of the International Court of Justice
at the request of either Government.

Upon receipt. of a note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of the Fed-
eration of Malaya, the Government of the United States of America
will consider that this note and your reply thereto constitute an
agreement between the two Governments on this subject, the agree-
ment to enter into force on the date of your note in reply.

Accept, Excellency, the renewed assurances of my distinguished
consideration.”

In reply I have the honour to inform you that the Federation
Government confirm the understandings as set out in your letter and
will regard that letter and this reply as constituting an Agreement
between the Governments of the Federation of Malaya and of the
United States of America, the Agreement to enter into force on the
date of this reply.

I have the honour to be, Your Excellency,
with the highest consideration,
Your obedient servant,

Ismam RauMan

Dr. Ismail bin Dato Abdul Rahman,
Minister of External Affairs,
Federation of Malaya.

His Excellency,
Mr. Homer Morrison By1neton, Jr.,
Ambassador Extraordinary and Plenipotentiary
of the United States of America,
Kuala Lumpur.

TIAS 4214 U. 5. GOVERRMENT PRINTING OFFICE: 1959


MALAYA

Guaranty of Private Investments

Agreement effected by exchange of notes
Signed at Kuala Lumpur April 21, 1959;
Entered into force April 21, 1959.

The American Ambassador to the Malayan. Minister of External
Affairs

No. 243 Kuata Lomrvr, April 21,1959
EXCELLENCY :

I have the honor to refer to conversations which have recently
taken place between representatives of our two Governments, relat-
ing to guaranties authorized by Section 413 (b) (4) of the Mutual
Security Act of 1954, [*] as amended. I-also have the honor to con-
firm the following understandings reached as a result of these
conversations :

1. The Governments of the Federation of Malaya and of the United
States of America will, upon the request of either of them, consult
respecting projects in the Federation of Malaya proposed by na-
tionals of the United States of America with regard to which
guaranties under Section 413 (b) (4) of the Mutual Security Act of
1954, as amended, have been made or are under consideration.

2. The Government of the United States of America agrees that it
will issue no guaranty with regard to any project unless it is ap-
proved by the Government of the Federation of Malaya.

3. With respect to such guaranties extending to projects which are
approved by the Government of the Federation of Malaya in accord-
ance with the provisions of the aforesaid Section 418 (b) (4), the
Government of the Federation of Malaya agrees:

a. That if the Government of the United States of America makes
payment in United States dollars to any person under any such
guaranty, the Government of the Federation of Malaya will
recognize the transfer by such person to the United States of
America of any right, title or interest of such person in assets
expropriated or assets rendered useless to such person by reason

768 Stat. 847; 22 U.S.C. § 1933(b) (4).

40524—59 (1) TIAS 4214


TREATIES ANE ‘THER INTERNATIONAL ACTS S._ IES 4214

GUARANTY OF PRIVATE INVESTMENTS

Agreement Between the
Unirep StaTes oF AMERICA
and Maaya

Effected by Exchange of Notes
Signed at Kuala Lumpur April 21, 1959



3

The Malayan Minister of External Affairs to the American
Ambassador

Mintsver or ExTerNaL AFFAIRS
FeperaTion or Mavaya
Kuata Lumpur

‘Tel. 85666. “7
Ref, No, 8R(480)251/14 Bist April, 1959.

Your Excrtiencr,
I have the honour to acknowledge receipt of your letter dated 21st
April, 1959, which reads as follows:

“T have the honour to refer to conversations which have recently
taken place between representatives of our two Governments, relat-
ing to guaranties authorized by Section 413 (b) (4) of the Mutual
Security Act of 1954, as amended. I also have the honour to
confirm the following understandings reached as a result of these
conversations :

1. The Governments of the Federation of Malaya and of the United
States of America will, upon the request of either of them, consult
respecting projects in the ‘Federation of Malaya proposed by na-
tionals of the United States of America with regard to which
guaranties under Section 413 (b) (4) of the Mutual Security Act of
1984, as amended, have been made or are under consideration.

2, The Government of the United States of America agrees that it
will issue no guaranty with regard to any project unless it is ap-
proved by the Government of the Federation of Malaya.

3. With respect to such guaranties extending to projects which are
approved by the Government of the Federation of Malaya in accord-
ance with the provisions of the aforesaid Section 413 (b) (4), the
Government of the Federation of Malaya agrees:

a. That if the Government of the United States of America
makes payment in United States dollars to any person under
any such guaranty, the Government of the Federation of
Malaya -will recognize the transfer by such person to the
United States of America of any right, title or interest of such
person in assets expropriated or assets rendered useless to such
person by reason of the expropriation of any other assets
forming part of the business or project of such person in the
Federation, or any currency or credit in any currency, with
respect to which such payment under 2 guaranty was made,
and the subrogation of the United States of America to any
claim or cause of action, or right of such person arising in
connection therewith.

b. That Malayan dollar amounts acquired by the Government
of the United States of America pursuant to such guaranties

TIAS 4214


TREATIES AND O1:xnER INTERNATIONAL ACTS SERIES 5850

INVESTMENT GUARANTIES

Agreement Between the
Unirep STATES OF AMERICA
and MALAYSIA

Amending the Agreement of
April 21, 1959

Effected by Exchange of Notes
Signed at Kuala Lumpur
June 24, 1965



2

of the expropriation of any other assets forming part of the
business or project of such person in the Federation, or any cur-
rency or credit in any currency, with respect to which such
payment under a guaranty was made, and the subrogation of

the United States of America to any claim or cause of action,
or right of such person arising in connection therewith.

b. That Malayan dollar amounts acquired by the Government of
the United States of America pursuant to such guaranties shall
be accorded treatment not less favorable than that accorded to
private funds arising from transactions of United States
nationals which are comparable to the transactions covered by
such guaranties, and that such Malayan dollar amounts will be
freely available to the Government of the United States of
America for administrative expenditures.

c. That any claim against the Government of the Federation of-
Malaya to which the Government of the United States of
America may be subrogated as a result of any payment under
such a guaranty, shall be the subject of direct negotiations be-
tween the two Governments. If within a reasonable period,
they are unable to settle the claim by agreement, it shall be
referred for final and binding determination to a sole arbitrator
selected by mutual agreement. If the Governments are unable,
within a period of three months, to agree upon such selection,
the arbitrator shall be one who may be designated by the Presi-
dent of the International Court of Justice at the request of
either Government.

Upon receipt of a note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of the Fed-
eration of Malaya, the Government of the United States of America
will consider that this note and your reply thereto constitute an
agreement between the two Governments on this subject, the agree-
ment to enter into force on the date of your note in reply.

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

Homer M. Brrneton, Jr.

His Excellency
Doctor Ismam bin Dato Annu, Ranman,
Minister of External Affairs,
Kuala Lumpur.

TIAS 4214


3

the United States of America and the Government of the Federa-
tion of Malaya relating to investment guaranties which may be
issued by the Government of the United States of America for
investments in activities in the Federation of Malaya. Since the
conclusion of this Agreement, legislation has been enacted in the
United States of America modifying and augmenting the coverage
to be provided investors by investment guaranties that may be
issued by the Government of the United States of America.

Tt is the understanding of my Government that the above-

. mentioned Agreement is applicable to the whole of Malaysia and
that amendments thereto will be considered to have the same
application.

In the interest of facilitating and increasing the participation
of private enterprise in furthering the development of Malaysia,
the Government of the United States of America is prepared to
issue investment guaranties providing such coverage as may be
authorized by the applicable United States legislation for appro-
priate investments in activities approved. by your Government
provided that your Government agrees, that’ the undertakings
between our respective Governments contained in the above-
mentioned Agreement will be applicable to such guaranties.
Accordingly, we propose that the above-mentioned Agreement be
amended as follows :—

(a) Substitute “Section 221(b) of the Foreign Assistance Act
of 1961, as amended,” for “Section 413 (b) (4) of the Mutual
Security Act of 1954, as amended,” wherever the latter
appears, and substitute “Section 221(b)” for “Section
413(b) (4)” wherever the latter appears.

(b) Substitute “Malaysia” for the “Federation of Malaya”
wherever the latter appears; in Subparagraph (a) of
Paragraph (3) and in the final paragraph of the Govern-
ment of Malaya’s Note of reply where the terms “the
Federation” and “Federation” appear, respectively, change
to “Malaysia”; in Subparagraph (b) of Paragraph (3)
change “Malayan dollar” to “local currency” in the two
places where it appears.

Upon receipt of a note from Your Excellency indicating that
the foregoing understandings and amendment are acceptable to
the Government of Malaysia and that such undertakings shall
apply, the Government of the United States of America will con-
sider 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.”

‘TIAS 5850"


2

(a) Substitute “Section 221 (b) of the Foreign Assistance Act of
1961, [7] as amended,” for “Section 413 (b) (4) of the Mutual
Security Act of 1954, [7] as amended,” wherever the latter
appears, and substitute “Section 221 (b)” for “Section 413
(b) (4)” wherever the latter appears.

(b)- Substitute “Malaysia” for-“the Federation of Malaya”
wherever the latter appears; in Subparagraph (a) of Para-
graph (3) and in the final paragraph of the Government of
Malaya’s Note of reply where the terms “the Federation”
and “Federation” appear, respectively, change to “Malaysia”;
in Subparagraph (b) of Paragraph (3) change “Malayan
dollar” to “local currency” in the two places where it appears.

Upon receipt of a note from your Excellency indicating that the
foregoing understandings and amendment are acceptable to the
Government of Malaysia and that such undertaking shall apply, 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.

James Dunpar BELL

His Excellency
Tun Hag Asput Razax Bin Dato Hussain,
Acting Prime Minister and
Acting Minister of External Affairs,
Kuala Lumpur.

The Malaysian Acting Prime Minister and Acting Minister of
External Affairs to the American Ambassador

PRIME MINISTER MALAYSIA
Telegraphic Addrese—PeemMent . .
Telephone Nos.-84432 -& 88228 ; ae so
Ai S08 UD La Kuata Lumpur
vat = 7 24th Tune, 1965.

Your Exce,iency,

I have the honour to acknowledge receipt of your letter of 24th
June, 1965, the contents of which I produce hereunder —

“I have the honor to refer to the Agreement. effected. by the
exchange of notes of Apri] 21, 1959 between the Government of

175 Stat. 429; 22 U.S.C, § 2181(b).
268 Stat. 847 ; 22 U.S.C. § 1933(b) (4).



MALAYSIA

Investment Guaranties

Agreement amending the agreement of April 21, 1959.
Effected by exchange of notes

Signed. at Kuala Lumpur June 24, 1965;

Entered into force June 24, 1965.

The American Ambassador to the Malaysian Acting Prime Minister
and Acting Minister of External Affairs

No, 437 Kvaua Lumpur, June 24, 1965.

EXxcELLEeNcY:

Ihave the honor to refer to the Agreement effected by the exchange
of notes of April 21, 1959 [*] between the Government of the United
States of America and the Government of the Federation of Malaya
relating to investment guaranties which may be issued by the Govern-
ment of the United States of America for investments in activities in
the Federation of Malaya. Since the conclusion of this Agreement,
legislation has been enacted in the United States of America modify-
ing and augmenting the coverage to be provided investors by invest-
ment guaranties that may be issued by the Government of the United
States of America.

It is the understanding of my Government that the above-mentioned
Agreement is applicable to the whole of Malaysia and that amend-
ments thereto will be considered to have the same application.

In the interest of facilitating and increasing the participation of
private enterprise in furthering ‘the development of Malaysia, the
Government of the United States of America is prepared -to, issue
investment guaranties providing such coverage as may be authorized
by the applicable United States legislation for appropriate invest-
ments in activities approved by your Government provided that your
Government agrees that the undertakings between our respective
Governments contained in the above-mentioned Agreement will be
applicable to such guaranties.

Accordingly, we propose that thé above-mentioned ‘Agreement be
amended. as. follows: .:.. . . an .

*TIAS 4214; 10 UST 776.

53~704-—65 q) TIAS 5850