3

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:

@

Gi)

(iii)

(iv)

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 appoint-
ments 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 appointment or
appointments, and both Governments agree to accept
such appointment or appointments.

The arbitral tribunal shall base its decision on the ap-
plicable 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 Gov-
ernments may request the arbitral procedure and par-
ticipate in it.

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 Presi-
dent 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.

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 Govern-
ment that the Agreement has been approved in con-ormity with the
Host Government’s constitutional procedures.[']

‘Apr, 13, 1978

TIAS 9004



8

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 inter~

H national law, shall be submitted, at

the request of either Government, to

i an arbitral tribunal for resolution

in accordance with Paragzaph 6(c).

{c) The arbitral tribunal for resolution
of disputes pursuant to Paragraphs

f 6(a) and 6(b) shall be established

y and function as follows:

(3) Each Government shall appoint
one arbitrator; these two
arbitrators shall designate a

'

eats Se

I who shall be a citizen of a third
ii State and be appointed by the

| two Governments. The arbitrators
fl 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

i absence of any other agreement,
request the President of the

| International Court of Justice

j to make the necessary appointment
or appointments, and both
Governments agree to accept

| such appointment or appointments.

TIAS 9004

eee



5

The Papua New Guinean Minister for Foreign Affairs and Trade to
the American Ambassador

MINISTER FOR FOREIGN AFFAIRS AND TRADE,
PAPUA NEW GUINEA

Central Government Offices,
WAIGANI

4 April, 1978.

Excellency, .

I acknowledge receipt of your letter of 28 November,
1977.

The text of that letter reads as follows:

"I have the honour to refer to conversations
which have recently taken place between representatives
of our two governments relating to investments in
Papua New Guinea which promote the development of
economic resources and productive. capacities of
Papua New Guinea and to insurance and guarantees of
such investments issued as an incentive by the
Government of the United States of America.

I also have the honour 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 Papua New Guinea, with

the assistance of insurance or guarantees (the “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 Papua New Guinea (the "Host
-Government") shall, upon the request of either,

consult respecting the nature of the project or

activity.

TIAS 9004



4

Upon receipt of a Note from Your Excellency indicating that the
foregoing provisions are acceptable to the Government of Papua New
Guinea, 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 in accordance with Paragraph 8.

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

RussELL OLson
Chargé d’ Affaires ad interim
His Excellency
Epia OLEWwaLe,

Minister for Foreign Affairs and Trade,
Port Moresby.

TIAS 9004



7

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
favourable 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 national 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 Governments.
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 Govemment, to an arbitral
tribunal for resolution in accordance
with Paragraph 6(c).

(b) Any. claim, against either of the two
Governments, arising from the events
which may result in liability of
the Issuing Government under coverage
issued in accordance with the Agreement
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.

TIAS 9004



TREATIES AND OTHER INTERNATIONAL ACTS SERIES 9004

INVESTMENT GUARANTIES ;

Agreement Between the
Unirep STaTES oF AMERICA
and Papua New Guinea

Effected by Exchange of Notes
Signed at Port Moresby and Waigani
November 28, 1977 and April 4, 1978



|
‘| 10

| 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.

Upon receipt of a Note from Your Excellency
indicating that the foregoing provisions are acceptable
to the Government of Papua New Guinea, the Government
t; 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 in
accordance with Paragraph 8."

I wish to confirm that the foregoing Agreement
is acceptable to the Government of Papua New Guinea
and that your letter together with this reply will
constitute an Agreement between our two Governments
in this matter,

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

NIWIA EBIA OLEWALE

Her Excellency,
Miss Mary Olmsted,
Ambassador,
Embassy of the United states
of Amexica,
P.O. Box 3492,
PORT MORESBY. :

[SEAL]

TIAS 9004

US. GOVERNMENT PREVTING OFFICE; 1=H~O-24-426 |

He LMA SORA a |


9

(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
vegulations 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.

TIAS 9004



6

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 as qualifying for. coverage.

3. If£ the Issuing Government makes payment to
any investor under coverage issued pursuant to this
Agreement, the Host Government 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 succession
of the Issuing Government to any right, title, claim,
privilege or cause of action existing, or which may
arise, in connection therewith. Nothing in this
Agreement shall be deemed to prevent submission to
any forum of a dispute relating to covered investment
in accordance with an agreement between the Host
Government and the transferring investor, including
an agreement to refer the disputes to the International
Centre for the Settlement of Investment Disputes.

The Issuing Government shall assert no greater rights
than those of the transferring investor under the
laws of the Host Government with respect of any
interests transferred or succeeded to under this
Paragraph. The Issuing Government does, however,
xeserve its rights to asset a claim in its sovereign
capacity in the eventuality of denial of justice

or other question of state responsibility as. defined
in 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 national 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.

TIAS 9004



2

claim, privilege or cause of action existing, or which may arise, in
connection therewith. Nothing in this Agreement shall be deemed to
prevent submission to any forum of a dispute relating to covered
investment in accordance with an agreement between the Host
Government and the transferring investor, including an agreement
to refer disputes to the International Centre for the Settlement of
Investment Disputes. The Issuing Government shall assert no greater
rights than those of the transferring investor under the laws of the
Host Government with respect of any interests transferred or suc-
ceeded to under this paragraph. The Issuing Government does, how-
ever, reserve its rights to assert a claim in its sovereign capacity in
the eventuality of denial of justice or other question of state respon-
sibility as defined in international law.

4, To the extent that the laws of the Host Government partially
or wholly invalidate or prohibit the acquisition from a covered in-
vestor of any interests in any property within its national territory
by the Issuing Government, the Host Government shall permit such.
investor and the Issuing Government to make appropriate arrange-
menis pursuant to which such interests are transferred to an entity
permitted to own such interests under the laws of the Host Govern-
ment.

5. Amounts in the lawful currency of the Host Government and
credits therecf 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
national 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 Governments. 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, against either of the two Governments, arising
from the events which may result in liability of the Issuing
Government under coverage issued in accordance with the
Agreement 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 nego-
tiations. 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,

TIAS 9004



PAPUA NEW GUINEA

Investment Guaranties

Agreement effected by exchange of notes

Signed at Port Moresby and Waigani November 28, 1977 and
April 4, 19785

Entered into force April 13, 1978.

The American Chargé d’ Affaires ad interim to the Papua New Guinean
Minister for Foreign Affairs and Trade

No. 61 Port Morzssy, November 28, 1977.

EXcELLENCY:

have the honor to refer to conversations which have recently taken
place between representatives of our two governments relating to
investments in Papua New Guinea which promote the development of
economic resources and productive capacities of Papua New Guinea
and to insurance and guarantees of such investments issued as an
incentive by the Government of the United States of America. 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
Papua New Guinea, with the assistance of insurance or guarantees
(the “coverage”) issued pursuant to this Agreement by the Govern-
ment of the United States of America, the Government of the United
States of America (the “Issuing Government”) and the Government
of Papua New Guinea (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 as qualifying for coverage.

3. If the Issuing Government makes payment to any investor under
coverage issued pursuant to this Agreement, the Host Government
shall, subject. to the provisions of Paragraph 4, recognize the transfer
to the Issuing Government of any currency, credits, assets or invest-
ment on account of which payment under such coverage is made as
well as the succession of the Issuing Government to any right, title,

34-426 O—78, (1) TIAS 9004



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
tribunals 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: $100 per year; $25 additional
‘for foreign mailing. Single copies vary in price, This issue 80 cents.