arise from the events causing payment under an investment guar-
antee shall, upon the request of either Government, be the subject
of negotiations between the two Governments and shall be settled,
insofar as possible, in such negotiations. If, within a period of
three months after a request for negotiation, the two Governments
are unable to settle any such dispute or claim by agreement, the

‘dispute or claim shall be referred upon the initiative of-either
Government, to a sole arbitrator, selected by mutual agreement,
for final and binding determination in light of the applicable
principles of international law. If the two Governments are un-
able to select an arbitrator within a period of three months after
indication by either Government of its desire to arbitrate, the
President of the International Court of Justice shall, at the request
of either Government, designate the arbitrator.

Being the foregoing provisions acceptable to the Somali Gov-
ernment, it is agreed that your Note together with this reply con-
-. stitute an Agreement between our two Governments on this sub-
“ject.and that the Agreement will enter into force on the date of
this reply.
Accept Your Excellency, the renewed assurances of my high-
est consideration.

AspuLLaut Issa

(Abdullahi Issa)
Minister of Foreign Affairs
Somali Republic ..

Mr. H. G. Torserr,
Ambassador of the United States of America,
Mogadiscio.

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U.S COVERNMEAT PAINTING OFFICE: t956



. 3
The Somali Minister of Foreign Affairs to the American Ambassador

MINISTERO DEGLI AFFARI ESTERI

be 8 Gen. 1964
EXcELLENCY,

T have the honour to refer to your letter No. 269 dated Novem-
ber 27, 1962, concerning the conclusion of an Investment Guarantee
Agreement between the Government of the United States of America
and the Government of the Somali Republic, and to confirm the result
reached on the subject as follows:

1. The Government of the United States of America and the
Government of the Somali Republic shall, wpon the request of
either Government, consult concerning investments in the Somali
Republic which the Government of the United States of America
may guarantee. .

The Government of the United States of America shall not
guarantee an investment in the Somali Republic unless the Gov-
ernment of the Somali Republic approves the activity to which
- the investment relates and recognizes that the Government of the

United States of America may guarantee such investment.

i)

3. If an investor transfers to the Government of the United
States of America pursuant to an investment guarantee, (a) law-
ful currency, including credits thereof, of the Somali Republic,
(b) any claims or rights. which the investor has or may have aris-
ing from the business activities of the investor in the Somali Re-
public or from the events entitling the investor to payment under
the investment guarantee, or (c) all or part of the interest of the
investor in any property (real or personal, tangible or intangible)
within the Somali Republic, the Government of the Somali Repub-
lic shall recognize such transfer as valid and effective.

4. Lawful currency of the Somali Republic, including credits
thereof, which is acquired by the Government of the United States
of America pursuant to a transfer of currency or from the sale of
property transferred under an investment guarantee shall be ac-
corded treatment by the Government of the Somali Republic with
respect to exchange, repatriation or use thereof, not less favour-
able than that accorded to funds of nationals of the United States
of America derived from activities similar to those in which the
investor had been engaged, and such currency may in any event
be used by the Government of the United States of America for
any of its expenditures in the Somali Republic.

5. Any dispute regarding the interpretation or application of
the provisions of this Agreement or any claim against the Gov-
ernment of the Somali Republic to which the Government of the
United States of America may succeed as transferee or which may

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TREATIES AND OTHER INTERNATIONAL ACTS SERIES 5512

INVESTMENT GUARANTIES

Agreement Between the

Unirep States or AMERICA

and the Somatt REPUBLIC
ee

Effected by Exchange of Notes
Signed at Mogadiscio November 27
1962 and January 8, 1964


SOMALI REPUBLIC

Investment Guaranties

Agreement effected by exchange of notes
Signed at Mogadiscio November 27, 1962 and January 8, 1964;
Entered into force January 8, 1964.

The American Chargé @Affaires ad interim to the Somali Acting
. Minister of Foreign Affairs .

Empassy oF, THE ~
che ~Unrrep Srares or America
No, 269° ° Mogadiscio, November 27, 1962
EXcELLENcy : —_ .

T have the honor to refer to conversations which have recently taken
place between representatives of our two governments relating to in-
vestments in the Somali Republic which further the development of
the economic resources and productive capacities of the Somali Repub-
lic und to guaranties of such investments by the Government ofthe
United States of America. I also have the honor to confirm the fol-
lowing understandings reached asa result of these conversations:

..1. The Government of the United States of America and the Gov-
ernment of the Somali Republic shall, upon the request of either, Gov-
ernment, consult concerning investments in the Somali Republic which
the Government of the United States of America may guarantee.

2. The Government of the United States of America shall not guar-
antee an investment in the Somali Republic unless.the.Government
of the Somali Republic approves the activity to which the investment
relates and recognizes that the Government of the United States of
America may guararitee such investment.

8. If an investor transfers to the Government of the United States
of America pursuant to an investment guaranty, (a) lawful currency,
including credits thereof, of the Somali Republic, (b) any claims or
rights which the investor has or may have arising from the business
activities of the investor in the Somali Republic-or from the events
entitling the investor to payment under the investment guaranty, or
(c) all or part of the interest of the investor in any property (real or
personal, tangible or intangible) within the Somali Republic, the Gov-
ernment of the Somali Republic shall recognize such transfer as valid
and effective. :

29-141—64 () TIAS 5512


2

4, Lawful currency of the Somali Republic, including credits
thereof, which is acquired by the Government of the United States of
American pursuant to a transfer of currency or from the sale of
property transferred under an investment guaranty shall be accorded
treatment by the Government.of the Somali Republic with respect to
exchange, repatriation or use thereof, not less favorable than that ac-
corded to funds of nationals of the United States of America derived
from activities similar to those in which the investor had been engaged,
and such currency may in any event be used by the Government of the
United States of America for any of its expenditures in the Somali
Republic.

5. Any dispute regarding the interpretation or application of the
provisions of this Agreement or any claim against the Government of
the Somali Republic to which the Government of the United States
of America may succeed as transferee or which may arise from the
events causing payment under an investment guaranty shall, upon the
request of either Government, be the subject of negotiations between
the two Governments and shail be settled, insofar as possible, in such
negotiations.’ ‘If, ‘within « period of three months after a request for
negotiation, the two Governments are unable to settle any such dispute
or claim by agreement, the dispute or claim shall be referred upon the
initiative of either Government, to a sole arbitrator, selected by mutual
agreement, for final and binding determination in light of the appli-
eable principles of international law. If the two Governments are
unable to select an-arbitrator within a period of three months after
indication by either Government of its desire to arbitrate, the Presi-
dent of the International Court of Justice shall, at the request of either
Government, designate the arbitrator.

Upon. receipt of a note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of the Somali
Republic, 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 onthe date of your noteinreply.

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

Tuomas M. Jupp
Chargé @ Affaires, ad interim

His Excellency,
Anpmazak Hact. Hussen,
Acting Minister of Foreign Affairs,
AM og ali Republic.

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