CO: 2
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| - ARTICLE III
, 1. The Governments of the United States of America and of the Republic of Tur-
ability, key will, upon the request of either Government, consult respecting projects in the

Republic of Turkey proposed by nationals of the United States of America and with
lating regard to which the Government of the United States of America may appropriately
ountries make guaranties of currency transfer under section 111 (b) (3) of the Economic
rade Cooperation Act of 1948.

2. The Government of the Republic of Turkey agrees that if the Government of
opera~ the United States of America makes payment in United States dollars to any person under
ci- such a guaranty,’ any liras, or credits in liras, assigned or transferred to the Govern-
c ment of the United States of America pursuant to that section shall be recognized as
ani- property of the Government of the United States of America.
vy
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deems
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have .



. CO - c ‘

ECONOMIC COCPERATION AGREEMENT
BETHESN THE UNITND SYATES CF ALERICA
AND THE RePUBLIC OF TURKEY

The Government of the United States of America and the Government of the
Republic of Turkey:

Recognizing that the restoration or maintenance in European countries of princi-
ples of individu:l liberty, free institutions, and genuine independence rests largely
upon the esteblishment of sound economic conditions, stable international economic
relationships, and the achievenent by the countries of Europe of a healthy economy in-
dependent of extraordinary outside assistence;

Recognizing that a strong and prosperous Zuropean economy is essential for the
attainment of the purposes of the United Nations;

Considering that the achievement of such conditions calls for a European recovery
plan of self-help and mutual cooperetion, open to all nations which cooperate in such a
plan, based upon 2 strong froduction effort, the expansion of foreig trade, the
creation or maintenance of internal financisl stability and the development of economic
cooperation, including all possible steps to establish and raintain valid rates of ex-
change and to reduce trede berriers;

Considering that in furtherance of these principles the Government of the Republic
of Turkey has joined with other like-minded nations in a Convention for Uuropean
Economic Cooperation signed at Faris on April 15, 19/8 under which the simatories of
that Convention agreed to undertake as their imuediate task the elaboration and execu-
tion of a joint recovery program, and that the Sovernment of the Republic of Turkey is
a member of the Organization for European Economic Cooperation created pursuant to the:
provisions of that Convention;

Considering also that, in furtherance of these principles, the Government of the
United States of America has enacted the Economic Cooperation Act of 1948, providing

+ for the furnishing of assistance by the United States of America to nations partici-
pating ina joint program for European recovery, in order to enable such nations through
their own individual and concerted efforts to become independent of extraordinary out=

side economic assistance;


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--

ARTICLE VII

1, The Governments of the United States of America and the Republic of Turkey
recognize that it is in their mutual interest that full publicity be given to the objec-
tives and progress of the joint program for European recovery and of the actions taken
in furtherance of that program. It is recognized that wide dissemination of informa-
tion on the progress of the program is desirable in order to develop the sense of common
effort and mutual aid which are essential to the accomplishment of the objectives of the
programe

2. The Government of ‘the United States of America will encourage the dissemination
of such information and will make it available to the media of public information.

3. The Government of the Republic of Turkey will encourage the dissemination of such
information both directly and in cooperation with the Organization for European Economic
Cooperation. It will make such information available to the media of public information
and take all practicable steps to ensure that appropriate facilities are provided for such
dissemination, It will further provide other participating countries and the Organization
for European Economic Cooperation with full information on the progress of the program for
economic recovery.

4. The Government of the Republic of Turkey will make public in Turkey in each
calendar quarter, full statements of operations under this Agreement, including information

as to the use of funds, commodities and services received,


2

ernment of Turkey shall also recognize any transfer to the Gov-
ernment of the United States of America pursuant to such guar-
anty of any compensation for loss covered by such guaranties
received from any source other than the Government of the United
States of America.

b. That amounts in Turkish lira acquired by the Government
of the United States pursuant to such guarantics 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 amounts in Turkish liras will be frecly available to the
Government of the United States of America for administrative
expenditures.

c. That any claim against the Government of Turkey, to which
the Government of the United States of America may be sub-
rogated as the result of any payment under such & guaranty,
shall be the subject of direct negotiations between the two Govern-
ments. 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 sclected 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 President of the International Court of
Justice at the request of cither Government.

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

Please accept, Excellency, the renewed assurances of my highest
consideration.

Fuercuer WARREN

Fletcher Warren

His Excellency
Erem Mernpenss,
Acting Minister of Foreiyn Affairs,
Ankara.

TIAS 3761


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-8

ARTICLE IV

1, The Government of the Republic of Turkey will facilitate the transfer to the
United States of America, for stock piling or other purposes, of materials originating
in the Republic of Turkey which are required by the United States of America as a result
of deficiencies or potential deficiencies in its own resources, upon such reasonable
terms of sale, exchange, barter or otherwise, and in such quantities, and for such
period of time, as may be agreed to between the Governments of the United States of
American and the Republic of Turkey, after due regard for the reasonable requirements
of the Republic of Turkey for domestic use and commercial export of such materials,

The Government of the Republic of Turkey wall take such specific measures as may be
necessary to carry out the provisions of this paragraph, including the promotion of the
increased production of such materials within the Republic of Turkey, and the removal

of any hindrances to the transfer of such materials to the United States of America,

The Government of the Republic of Turkey will, when so requested by the Government of
the United States of America, enter into negotiations for detailed arrangements necessary
to carry out the provisions of this paragraph. :

2, The Government of the Republic of Turkey will, when so requested by the Govern-
ment of the United States of America, negotiate such arrangements as are appropriate to
carry out the provisions of paragraph (9) of sub-Section 115 (b) of the Economic Coopera—
tion Act of 1948, which relates to the development and transfer of materials required by
the United States of America.

3. The Government of the Republic of Turkey, when so requested by the Government
of the United States of America, will cooperate, wherever appropriate, to further the
objectives of paragraphs 1 and 2 of this Article in respect of materials originating

outside of the Republic of Turkey.


&

-l-

ARTICLE X

As used in this Agreement the term “participating country" means

(4) any country which signed the Report of the Committee of European
Economic Cooperation at Paris on September 22, 1947, and terri-
tories for which it has international responsibility and to which
the Economic Cooperation Agreement concluded between that country
and the Government of the United States of America has been ap-
plied, and

(44) any other country (including any of the zones of occupation of
Germany, and areas under international administration or control,
‘and the Free Territory of Trieste or either of its zones) wholly
or partly in Europe, together with dependent areas under its ad-
ministration;
for so long as such country is a party to the Convention for European Economic Coopera-

tion and adheres to a joint program for European recovery designed to accomplish the
purposes of this Agreement,

3
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4

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-10-

ARTICLZ VI

1, The two Governments will, upon the request of either of them, consult regarding

any matter relating to the application of this Agreement or to operations or arrangerients

carried out pursuant to this Agreement.

2, The Government of the Republic of Turkey will comunicate to the Government of

the United States of America in a form and at intervals to be indicated by the latter

after consultation with the Government of the Republic of Turkey:

(a)

(v)

(c)

detailed information of projects, programs and «.easures proposed or adopted

by the Government of the Republic of Turkey to carry out the provisions of this
Agreement and the General Obligations of the Convention for European Economic
Cooperetion;

full statexents of operations under this Agree:cnt, including a stetement on
the use of funds, commodities and services received thereunder, such statements
to be made in each calendar quarter;

information regardinz its economy and any other relevant information, necessary
to supplement that obtained by the Government of the United States of America
from the Orgenization for Suropean Economic Cooperation, which the Government
of the United States of America may need to determine the nature and scope of
operations under the Economic Cooperation Act of 198, and to evaluate the
effectiveness of assistance furnished or contemplated under this Agreement and

generally the prosress of the joint recovery program.

3. The Government of the Republic of Turkey will assist the Government of the United

States of America to obtain information relating to the materials originating in Turkey

referred to in Article IV which is necessary to the formulation and execution of the

arrangements provided for in that Article.


: 5
e ARTICLE II
as to : :
-istance | 1. In order to achieve the maximum recovery through the employment of assistance
ernment : “received from the Government of the United States of America, the ‘Government of the
: Republic of Turkey will use its best endeavors:
: a) to adopt or maintain the measures necessary to ensure efficient and practical
use of all the resources available to it, including
(i) such measures as may be necessary to ensure that the commodities and
; services obtained with assistance furnished under this Agreement are
used for purposes consistent with this Agreement and, as far as prac-
ticable, with the general purposes outlined in the schedules furnished
by the Government of the Republic of Turkey in support of the require-
ments of assistance to be furnished by the Government of the United
States of America;
@ (44) the observation and review of the use of such resources through an
effective follow-up system approved by the Organization for European
Economic Cooperation; and
(iii) to the extent practicable, measures to locate, identify and put into
appropriate use in furtherance of the joint program for European
recovery, assets, and earnings therefrom, which belong to nationals of
the Republic of Turkey and which are situated within the United States
of America, its territories or possessions. Nothing in this clause
imposes any obligation on the Government of the United States of
America to assist in carrying out such measures or on the Government
of the Republic of Turkey to dispose of such assets;
bd) to promote the development of industrial and agricultural production on a
sound economic basis; to achieve such production targets as may be established
through the Organization for European Economic Cooperation; and when desired
@ : by the Government of the United States of America, to communicate to that

Government detailed proposals for specific projects contemplated by the

Government of the Republic of Turkey to be undertaken in substantial part with


TIAS 2500 2

B. 1. Lira amounts which become the property of the Government
of the United States upon the invocation of guaranties of convertibility
authorized by Section 111 (b) (3) (iv) (D) of the Economic Cooperation
Act of 1948, us amended, covering payments pursuant to contracts
for. the furnishing of capital goods items aud related services under
projects approved by the Government of Turkey (approval by the
Government of Turkey of a project for Eca financing under its pro-
gram allotment will constitute the approval required by Section 111
(b) (3) of the Act as a condition to the issuance of a forward contract-
ing guaranty covering any part or all of such project) will be freely
available to the Government of the United States for administrative
expenditures.

2. In the event that Bea funds are allotted to the Government
of Turkey for any projects covering contracts which are the subject
of guaranties authorized by Section 111 (b) (3) (iv) (D) of the Eco-
nomic Cooperation Act of 1948, as amended, the Government. of
Turkey will take all necessary steps, including the issuance of sub-
authorizations, to make such funds available to mect all payments
under such contracts as they become due,

should greatly appreciate your advising me as soon as conveniently
possible whether the foregoing provisions are in conformity with the
views of the Turkish Government. If they are, I should be most
obliged if you would confirm thesc assurances on behalf of your
Government.
Please accept, Excellency, the renewed assurances of my highest
consideration.
G. Wapsworri
G. Wadsworth
His Excellency
Samet AGaoG.U
Acting Minister of Foreign Affairs,
Ankara

The Turkish Minister of Foreign Affairs to the American Ambassador

115572/86 Ankara; November 15th, 1951
Excenbexcy,

[have the honor to acknowledge the receipt of your Note No: 609
dated Nov. 15 which reads as follows:

“Excellency, .

I have the honor to refer to conversations which have recently
taken place between representatives of our two Governments with


t . their

rer

> 48 the guaran-

the United

he two Govern-

the United

.r the purpose, |

ages, both

-17-

ANNEX

1. It is understood that the requirements of paragraph 1 (a) of Article II, re-
lating to the adoption of measures for the efficient use of resources, would include,
with respect to commodities furnished under the Agreement, effective measures for safe-
guarding such commodities and for preventing their diversion to illegal or irregular
markets or channels of trade.

2. It is understood that the obligation under paragraph 1 (c) of Article II to
balance the budget would not preclude deficits over a short period but would mean a
budgetary policy involving.the balancing of the budget in the long run.

3. It is understood that the business practices and business arrangements re-
ferred to in paragraph 3 of Article II mean:

(a) fixing ‘prices, terms or conditions to be observed in dealing with others in

the purchase, sale or lease of any product;

(b) excluding enterprises from, or allocating or dividing, any territorial market
or field of business activity, or allocating customers, or fixing sales
quotas or purchase quotas;

(c) discriminating against particular enterprises;

(4) limiting production or fixing production quotas;

(e) preventing by agreement the development or application of technology or in-
vention whether patented or unpatented;

(f) extending the use of rights under patents, trademarks or copyrights granted
by either country to matters which, according to its laws and regulations,
are not within the scope of such grants, or to products or conditions of
production, use or sale which are likewise not the subjects of such grants;
and

{g) such other practices as the two Governments may agree to include.

4, It is understood that the Government of the Republic of Turkey is obligated to
take action in particular instances in accordance with paragraph 3 of Article II only
after appropriate investigation or examination.

5. It is understood that the projects referred to in paragraph 1 of Article III

tas


be

b. That amount in Turkish lire acquired by the Government of
the United States 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 amounts in Turkish liras
will be freely available to the Government of the United
States of America for administrative expenditures.

ce. That any claim against the Government of Turkey, to which
the Government of the United States of America may be
subrogated as the result of any payment under such a
guaranty, shall be the subject of direct negotiations between
the two Goveraments. 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 upoa
such selection, the arbitrator shall be onc who may be
designated 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 Turkey, the Government of the United States of America
will consider that this Note and your reply thereto constitute
an agreement between the Governments on this subject, the
agreement to enter into foree on the date of your note in reply.”

T have the honor to inform Your Excellency that the terms of
the foregoing Note are acceptable to the Government of the
Republic of Turkey and that the Goverament of the Republic of
Turkey consider Your Excellency’s Note and the present reply
thereto as constituting an Agreement between our two Govern-
ments on this subject, the Agreement to enter into force on
to-day’s date.

Accept, Excellency, the renewed assurances of my highest

consideration,

TIAS 3761

For the Acting Minister of
Foreign Affairs
: Meum Esennen
His Excelleney
Frercunr Warne,
Ambassador of the
United States of America,
Ankara,

U. a. Goveanuent painting ornice. 137


3.

The Purkish Acting Minister of Foreign Affais to the American

Ambassador
rornl UMHURI
BARICIYE VEKALE itn .
No: 1153/6 "January 15, 1957

EXCELLENCY:
T have the honor to acknowledge receipt of Your Excellency’s
Note No. 1351 of this date which reads as follows:

“T have the honor to refer to conversations which have
recently taken place batween representatives of our two Govern-
ments with reference to Article III of the Economic Cooperation
Agreement between the United States of America and the
Republic of Turkey, signed at Ankara on July 4, 1948, as
amended, and to Section 413 (b) (4) (B) Gi) of the Mutual
Security Act of 1954, as amended. I also have the honor to
confirm the following understandings reached § as a result of
these conversations:

The Governments of Turkey and of the United States of
American will, upon the request of either of them consult
respecting projects in Turkey proposed by nationals of the
United States of America with regard to which guaranties
under Section 413 (b) (4) (B) (ii) of the Mutual Security Act
of 1954, as amended, have been made or are under considera-
tion. With respect to such guaranties extending to projects
which are approved by the Government of Turkey in accord-
ance with the provisions of the aforesaid Section, the Govern-
ment of Turkey agrees:

a. That if the Government of the United Stales of America
makes payment in United States dollars to any person under
any such guaranty, the Government of Turkey will recognize
the transfer to the United States of America of any right,
title or interest of such person in assets, currency, credits, or
other property on account of which such payment was made
and the subrogation of the United States of America to any
claim or cause of action of such person arising in connection
therewith. The Government of Turkey shall also recognize
any transfer to the Government of the United States of
America pursuant to such guaranty of any compensation
for loss covered by such guaranties received from any source
other than the Government of the United States of America.

1 Republic of Turkey

Ministry of Foreign Affairs

TIAS 3761


-6-

assistance made available pursuant to this Agreement, including whenever prac-
ticable projects for increased production of coal and food;

c) to stabilize its currency, establish or maintain a valid rate of exchange,
balance its governmental budget, create or maintain internal financial stability,
and generally restore or maintain confidence in its monetary system; and

d) to cooperate with other participating countries in facilitating and stimlating
an increasing interchange of goods and services among the participating countries
and with other countries and in reducing public and private barriers to trade
among themselves and with other countries.

2. Taking into account Article @ of the Convention for European Economic Coopera-
tion looking toward the full and effective use of manpower available in the partici-
pating countries, the Government of the Republic of Turkey will accord sympathetic
consideration to proposals made in conjunction with the International Refugee Organi-
zation directed to the largest practicable utilization of manpower available in any
of the participating countries in furtherance of the accomplishment of the purposes
of this Agreement.

3. The Government of the Republic of Turkey will take the measures which it deems
appropriate, and will cooperate with other participating countries, to prevent, on the
part of private or public commercial enterprises, business practices or business
arrangements affecting international trade which restrain competition, limit access
to markets or foster monopolistic control whenever such practices or arrangements have
the effect of interfering with the achievement of the joint program of European

recovery.


The American Ambassador to the Turkish Acting Minister of Foreign

Affairs

FlAmunrcan Enmassy,
No. 609 ‘Ankara, November 15, 1951
Exce.Lency:

Thave the honor to refer to conv ations which have recently taken
place between representatives of our two Governments with reference
to Article III of the Economic Cooperation Agreement between the
United States of America and the Republic of Turkey, signed at
Ankara on July 4, 1948,["] as amended,(?] and to Section 111 (b) (8)
‘of the Hcoromic Cooperation Act of 1948 as amended, (*} which author-
izes the Administrator of the Economic Cooperation Administration
to guarantee investments made in participating countries by American
citizens and companies.

It is my understanding, based on these conversations, that the
Turkish Government would be agreeable to give assurances os set
forth in the following numbered paragraphs:

A. 1. Insofar as guaranties are mado to United States investors,
covering projects in Turkey, pursuant to Section 111 (b) (3) of the
Economic Cooperation Act of 1948, as amended, other than those
made pursunnt to subsection (iv) (D) thereof, and, provided such
projects are approved by the Government of Turkey, the Government
of Turkey gives assurances thet lira amounts which become the prop-
erty of the Government of the United States will be accorded treat-
ment not less favorable than that granted to any private funds arising
from comparable transactions by United States investors.

9. Tavestors in guarantied projects, as described in paragraph 1,
will receive treatment xs to the convertibility of income and principal
equal to the most favorable treatment accorded by the Government
of Turkey to other investors. .

3. Li mounts which become the property of the Government,
of the United States upon the invocation of the guarantics made pur-
suant to Section 111 (b) (3) of the Act, as amendeil, will be freely

vailable to the Government of the United States for administrative
mdi ties.

1 Treatics and Other International Acts Series 1794; 62 Stat., pt. 2, p. 2569.
2 TTAS 2037; 1 UST 188; and TIAS 2392.
362 Siat. 144; 22 U.S. C. § 1509 (b) (3).

28135-53 qa)


-R-
ARTICLE VIII

1. The Government ‘of the Republic of Turkey agrees to receive & Special Mission for
Economic Cooperation which will discharge the responsibilities of the Government of the
United States of America in the Republic of Turkey under this Agreenent.

2, The Government of the Republic of Turkey will, upon appropriate notification from
the Ambassador of the United States of America in the Republic of Turkey, consider the
Special Mission and its personnel, and the United States Special Representative in Europe,
as part of the Embassy of the United States of America in the Republic of Turkey for the

purpose of enjoying the privileges and immunities accorded to that Embassy and its person-

-nel of comparable rank, The Government of the Republic of Turkey will further accord

appropriate courtesies to the members and staff of the Joint Committee on Foreign Economic
Cooperetion of the Congress of the United States of America, and grant them the facilities
and assistance necessary to the effective performance of their responsibilities,

3. The Government of the Republic of Turkey, directly and through its representatives
on the Organization for European Economic Cooperation, will extend full cooperation to the
Special Mission, to the United States Special Representative in Europe and his staff, and
to the members and staff of the Joint Committee, Such cooperation shall include the pro-
vision of all information and facilities necessary to the observation and review of the

carrying out of this Agreement, including the use of assistance furnished under it.

fur'
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TURKEY

Investment Guarantics

Agreement supplementing the agreements of November 15, 1951,
and January 15, 1957.

Effected by exchange of notes

Signed at Ankara November 27, 1964;

Entered into force November 27, 1964.

The American Ambassador to the Turkish Minister of Foreign Affairs

No. 780 Novesiver 27, 1964
Excetuency:

Thave the honor to refer to Article III of the Economie Cooperation
Agreement of July 4, 1948, [7] as amended, between our two Govern-
ments, and the agreements effected by exchanges of notes of Novem-
ber 15, 1951 and of January 15, 1957, [*] relating to investment guar-
anties which may be issued by the Government of the United States
of America for investments in activities in Turkey. After the conclu-
sion of these agreements, legislation has been enacted in the United
States of America modifying and augmenting the coverage to be pro-
vided investors by investment guaranties that may be issued by the
Government of the United States of America,

Tn the interest of facilitating and increasing the participation of
private enterprise in furthering the economic development of Turkey,
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 agre¥s that the undertakings between our respective
Governments contained in the above-mentioned agreements will be
applicable to such guaranties,

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Government of Turkey and that such
undertakings 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 Agree-
merit to enter into force on the date of your note in reply,

> TIAS 1794; 62 Stat. (pt. 2) 2560.
> TIAS 2500, 3761; 3 UST 3 SUST 202.

40-778— 05 qd) TIAS 5704


\

TIAS 2500 4

will take all necessary steps, including the issuance of sub-authoriza-
tions, to make such funds available to meet all payments under such
contracts as they become due.

Cshould greatly appreciate your ady tig Me as suon as conveniently
possible whether the foregoing provisions are in conformity with the
views of the Turkish Government. If they are, I should be most
obliged if you would confirm these assurances on behalf of your
Government,

Please accept, Excellency, the renewed assurances of my highest
consideration.”

T have the honor to confirm to Iis Excellency, that the Turkish
Government gives its approval to the above mentioned.
- Please accept Excellency, the renewed assurances of my highest
consideration.
For the Minister of Foreign Affairs
[skat] Farin Rtsrii Zoruy
Fatin Rusti Zorlu

W. 8, GovEmRueut painting orFice: 1999

Co


oo"

3 TIAS 2500

reference to Article 111 of the Economic Cooperation Agreement
between the United States of America and the Republic of Turkey,
signed at Ankara on July 4, 1948, as amended, and to Section TLT (b)
(3) of the Economic Jooperation Act of 1948 as amended, whieh
authorizes the Administrator of the Economic Covperation Admin-
istration to guarantee investments inade in participating countries by
American citizens and companies.

It is my understanding, based on these conversations, that the
Turkish Government would be agreeable to give assurances as set
forth in the following numbered paragraphs:

A. 1. Insofar as guaranties arc made to United States investors,
covering projects in Turkey, pursuant to Section 111 (b) (3) of the
Economic Cooperation Act of 1948, as amended, other than those
made pursuant to subsection (IV) (D) thereof, and, provided such
projects are approved by the Government of Turkey, the Govern-
ment of Turkey gives assurances that lira amounts which become the
property of the Government of the United States will be accorded
trentment not less favorable than that granted to any private funds
arising from comparable transactions by United States investors.

2. Investors in guarantied projects, as described in paragraph 1,
will receive treatment as to the convertibility of income and principal
equal to the most favorable treatment aceorded by the Government
of Turkey to other investors,

3. Lira amounts which become the property of the Government of
the United States upon the invocation of the guaranties made pur-
suant to Section 111 (b) (3) of the Act, as amended, will be freely
available to the Government of the United States for administrative
expenditures.

B. 1. Lira amounts which become the property of the Govern-
ment of the United States upon the invocation of guaranties of con-
vertibility authorized by Section 111 (b) (3) (LV) (D) of the Economic
Cooperation Act of 1948, as amended, covering payments pursuant
to contracts for the furnishing of capital goods items and related
services under projects approved by the Government of Turkey
(approval by the Government of Tarkey of a project for Eca financing
under its pregram allotment will constitute the approval required by
Section 111 (b) (3) of the Act as a condition to the issuance of a
forward contracting guaranty covering any part or all of such project)
will be freely available to the Goverument of the United States for
administrative expenditures.

2. In the event that Eca funds are allotted to the Government of
Turkey for any projects covering contracts which are the subject of
guaranties authorized by Section 111 (b) (3) (£V) (D) of the Economie
Cooperation Act of 1948, as amended, the Government of Turkey



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i

- are those approved by the two Governments, dn accordance with section 111 (b) (3) of }

the Economic Cooperation Act of 1948. 7

6. It is understood that the phrase in Article IV "after due regard for the

veasonable requirements of the Republic of Turkey for domestic use" would include the
maintenance of reasonable stocks of the materials concerned and that the phrase ,
"commercial export" might include barter transactions. It.is also understood that |
arrangements negotiated under Article IV might appropriately inelude provision for
consultation, in accordance with the principles of Article 32 of the Havana Charter
for an. International Trade Organization, in the event that stock piles are liquidated.

7. ‘It is understood that the Government of the Republic of Turkey will not be )
requested, under paragraph 2 (a) of Article VI to furnish detailed information about
minor projects or confidential commercial or technical information the disclosure of

@ which would injure legitimate commercial interests.

8. It is understood that the Government of the United States of America in
making the notifications referred to in paragraph 3 of Article VIII would bear in mind
the desirability of restricting, so far as practicable, the number of officials for
whom full diplomatic privileges would pe requested. It is also understood that the \
detailed application of- Article VIII would, when necessary, be the subject of inter-
governmental discussion. :

9. Itis understood that any agreements which might be arrived at pursuant to

paragraph 2 of Article IX would be subject to ratification by the Senate of the

United States of America.

10. It is understood that in the event it is proposed to make assistance avail-
able to Turkey on a grant basis the two Governments will consult with a view to amend-
ing the Agreement so as to take adequate provision for the deposit of local currency
in accordance with the requirements of the Economic Cooperation Act of 1948, acts

© amendatory and supplementary thereto, and appropriation acts thereunder.



a /
REATIES AND OTHER INTERNA ONAL ACTS SERIES 2500

ECONOMIC COOPERATION

Guaranties Under Public Law 472, 80th Congress,

as amended

Agreement between the
Unirep Stares oF AMERICA
and TURKEY

( © Effected by Exchange of Notes
Signed at Ankara November 15, 1951

@ Entered into force November 15, 195]



to the
inating
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nable

uch

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iate to
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Mo

ARTICLE V

1, The Government of the Republic of Turkey will cooperate with the Government
of the United States of America in facilitating and encouraging the promotion and de-

velopment of travel by citizens of the United States of America to and within partici-

pating countries,



vpean

which

untry

tic Coopera~

olish the

-b-

ARTICLE XI '

1, This Agreement shall be subject to ratification by the Grand National Assembly
of Turkey. It shall become effective on the day on which notice of such ratification
ig given to the Government of the United States of America, Subject to the provisions
of paragraphs 2 and 3 of this Article, it shall remain in force until June 30, 1953, and,
unless at least six months before June 30, 1953, either Government shall have given
notice in writing to the other of intention to terminate the Agreement on that date » it
shall remain in force thereafter until the expiration of six months from the date on
which such notice shall have been given,

2. If, during the life of this Agreement, either Government should consider there
has been a fundamental change in the basic assumptions underlying this Agreement, it
shall so notify the other Government in writing and the two Governments will thereupon
consult with a view to agreeing upon the amendment, modification or termination of this
Agreement. If, after three months from such notification, the two Governments have not
agreed upon the action to be taken in the circumstances, either Government may give
notice in writing to the other of intention to terminate this Agreement. Then, subject
to the provisions of paragraph 3 of this Article, this Agreement shall terminate either:

(a) six months after the date of such notice of intention to terminate, or

(b) after such shorter period as may be agreed to be sufficient to ensure

that the obligations of the Government of the Republic of Turkey are
performed in respect of any assistance which may continue to be furnished
by the Government of the United States of America after the date of such
notice;
provided, however, that Article IV and paragraph 3 of Article VI shall remain in effect
until two years after the date of such notice of intention to terminate, but not later
than June 30, 1953.
3. Subsidiary agreements and arrangements negotiated pursuant to this Agreement

may remain in force beyond the date of termination of this Agreement and the period of


TURKEY

Guaranty of Private Investments

Agreement effected by exchange of notes
Signed at Ankara January 15, 1957;
Entered into force January 15, 1957.

The American Ambassador to the Turkish Acting Minister of Foreign
: Affairs

Amenican Eupassy
No, 1361 Ankara, January 15, 1957

EXcELLENCY:

I have the honor to refer to conversations which have recently
taken place between representatives of our two Governments
with reference to Articlo IIT of the Economic Cooperation Agree-
ment batween the United States of America and the Republic of
Turkey, signed at Ankara on July 4, 1948, as amended, and to
Section 413 (b) (4) (B) (ii) of the Mutual Security Act of 1954, as
amended. I also have the honor to confirm the following under-
standings reached as a result of these conversations:

The Governments of Turkey and of the United States of
America will, upon the request of either of them consult respecting
projects in ‘Turkey proposed by nationals of the United States of
America with regard to which guaranties under Section 413 (b)
(4) (B) Gi) of the Mutual Security Act of 1954, as amended, have
been made or are under. consideration. With respect to such
guaranties extending to projects which are approved by the
Government of Turkey in accordance with the provisions of the
aforesaid Section, the Government of Turkey 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 Turkey will recognize the
transfer to the United States of America of any right, title or
interest of such person in assets, currency, credits, or other prop-
erty on account of which such payment was made and the sub-
rogation of the United States of America to any claim or cause of
action of such person arising in connection therewith. The Gov-

‘BS6H0—57 3) TIAS 3761



o~

-2-

Taking note that the Government of the Republic of Turkey has already expressed
its adherence to the purposes and policies of the Economic Cooperation Act of 1948;

Desiring to set forth the understandings which govern the furnishing of assist-
ance by the Government of the United States of America under the Economic Cooperation
Act of 1948, the receipt of such assistance by the Republic of Turkey, and the measures
which the two Governments will take individually and together in furthering the re-
covery of the Republic of Turkey as an integral part of the joint program for European
recovery;

Have agreed as follows:


ohn

procurement will be effected at reasonable prices and on reasonable terms and so as to
arrange that the dollars thereby made available to the country from which the assistance
is procured are used in a manner consistent with any arrangements made by the Government

of the United States of America with such country,


3

ments on this subject
in reply.

stitute an Agreement between our two Gover!
the ‘Agreement to enter into force on the date of your not

3 lave the honor to inform Your Excellency that the terms of the
foregoing Note are acceptable to the Government of the Repub’
of Tu key and that the Government of the Repub
sider Your Exceliency’s Note and the present 1
tuiing an Agreement between our two Governments on this subject,
the ‘Agreement to enter into force on to-day’s date.

Accept, Excellency, the renew ea as 7 of my highest
consideration.

Elis Excellency
Rayuonp A. Hare
Ambassador of the United Stutes
of America

Ankara.

Be COE PENSE


Mission for
nt of the

ication from
ider the

e in Europe,
ey for the
its person-
accord

‘gn Economic
» facilities

tion to the

staff, and

e the pro~
of the

it.

ARTICIE IX

1, The Governments of the United States of America and the Republic of Turkey
agree to submit to the decision of the International Court of Justice any claim espoused
vy either Goverment on behalf of one of its nationals against the other Government for
compensation for damage arising as a consequence of governmental measures (other than
measures concerning enemy property or interests) taken after April 3, 1948, by the other
Goverrment and affecting property or interest of such national, including contracts with
or concessions granted by duly authorized authorities of such other Government, It is
understood that the undertaking of each Government in respect of claims espoused by the
other Government pursuant to this paragraph is made in the case of each Government under
the authority of and is limited by the terms and conditions of such effective recognition
as it has heretofore given to the compulsory jurisdiction of the International Court of
Justice under Article 36 of the Statute of the Court. The provisions of this paragraph
shall be in all respects without prejudice to other rights of access, if any, of either
Government to the International Court of Justice or to the espousal and presentation of
claims based upon alleged violations by either Government of rights and duties arising |
under treaties, agreements or principles of international law,

2. The Governments of the United States of America and of the Republic of Turkey
further agree that such claims may be referred, in lieu of the Court, to any arbitral
tribunal mutually agreed upon,

3. It is further understood that neither Government will espouse a claim pursuant
to this Article until its national has exhausted the remedies available to him in the

administrative and judicial tribunals of the country in which the claim arose,


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

His Excellency
Frnon Croat ERK, 7 e
Minister of Foreign Affairs,
Ankara.

The Turkish Minister of Foreign Affairs to the American Ambassador

q0RKiyE CUMHURIYETIO
DISISLERI BAKANLIGI

118.160-IKT.I-1/77 Novempur 27, 1964.
EXCELLENCY:

Thave the honor to acknowledge receipt of Your Excellency’s Note
No. 780 of this date which reads as follows:

«J pave the honor to refer to Article III of the Economic Coope
tion Agreement of July 4, 1948, as amended, between our two Gov-
ernments, and the agreements effected by exchanges of notes of
November 15, 1951 and of January 15, 1957, relating to investment
guaranties which may be issued by the Government of the United
States of America for investments in activities in Turkey. After
the conclusion of these agreements, legislation has been enacted in
the United States of America modifying and augmenting the cov-

rage to be provided investors by investment guaranties that may be
issued by the Government of the United States of America.

In the interest of facilitating and increasing the participation of
private enterprise in furthering the economic development of Tur-
key, the Government of the United States of America is prepared io
issue investment guaranties providing such coverage as may bo
authorized by the applicable ‘United States legislation for appro-
priate investments in activities approved by your Government pro-
vided that your Government agrees that the undertakings bet ween
our respective Governments contained in the above-mentioned agree-
ments will be applicable to such guaranties.

rt

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Government of Turkey and that such
undertakings shall apply, the Government of the United States of
‘America will consider that this note and your reply thereto con-

» Republic of Turkey
Ministry of Foreign Affairs

TIAS S704


-16-

effectiveness of such subsidiary agreements and arrangements shall be governed by their
own terms. Paragraph 2 of Article III shall remain in effect for so long as the guaran~
ty payments referred to in that Article may ve made by the Government of the United :
States of america,

4. This Agreement may be amended at any time by agreement between the two Govern- |
ments. ;

5. The Annex to this Agreement forms an integral part thereof.

& This Agreenent shall b. registered .

the Secretary-Gereral of the United
Nations. :

1N WITNESS WileRUCF the respective representatives, duly authorized for the purpose, |

have signed the present agreement. :
,

Done at Arkara, Turkey, in duplicate, in the English and Turkish languages, both

texts authentic, this fourth day of July, 1948,

For the Government of the For the Government of
Yi States of America : the Republic of Turkey
IN

FC bole we

é

. panini Siar nentanetinttiee nineteen


ECONOMIC
COOPERATION
AGREEMENT

Between

The UNITED STATES of AMERICA

and

The REPUBLIC OF TURKEY

DEPARTMENT OF STATE


CO - 7

ARTICLE I

1, The Government of the United States of America undertakes to assist the

Republic of Turkey, by making available to the Government of the Republic of Turkey, ‘

or to any person, agency or organization designated by the latter Government such
assistance as may be requested by it and approved by the Government of the United
States of America, The Government of the United States of America will furnish this
assistance under the provisions, and subject to all the terms, conditions and termina-
tion provisions, of the Economic Cooperation Act of 1948, acts amendatory and supple-
mentary thereto and appropriation acts thereunder, and will make available to the
Government of the Republic of Turkey only such commodities, services and other assist-
ance as are authorized to be made available by such acts,

2. The Government of the Republic of Turkey, acting individually and through the
Organization for European Economic Cooperation, consistently with the Convention for
European Economic Cooperation signed at Paris on April 16, 1948 will exert sustained
efforts in common with other participating countries speedily to achieve through a joint
recovery program economic conditions in Europe essential to lasting peace and prosperity
and to enable the countries of Europe participating in such a joint recovery program
to become independent of extraordinary outside economic assistance within the period
of this Agreement. The Government of the Republic of Turkey reaffirms its intention
to take action to carry out the provisions of the General Obligations of the Convention
for European Economic Cooperation, to continue to participate actively in the work of
the Organization for European Economic Cooperation, and to continue to adhere to the
purposes and policies of the Economic Cooperation Act of 1948.

3. With respect to assistance furnished by the Government of the United States of
America to the Republic of Turkey and procured from areas outside the United States of
America, its territories and possessions, the Government of the Republic of Turkey will

cooperate with the Government of the United States of America in ensuring that