The Gambia Ministry of External Affairs to the American Endiassy

MINISTRY OF EXTERNAL AF
BATHURST.
THE GAMBIA

IRS.

PM/6654/ (81)

The Ministry of External Affairs of the Government of The Gambia
presents its compliments to the Embassy of the United States of
America in The Gambia and. with reference to the Embassy's Note
No. 35 of 24th July, 1967, on the subject of an Investments Guarantee
Agreement between the Government of the United States of American
and that of the Gambia, has the honour to state that the Gambia Gov-
ernment: accepts the proposal to conclude an Agreement on the lines
of the understandings reached in conversation and set out in the
Embassy's Note above mentioned, as follow:

1. When nationals of the Government of the United States of
America (the Guaranteeing Government) propose to invest with
the stance of guaranties issued pursuant to this Agreement in
a project or activity within the territorial jurisdiction of the
Government of The Gambia (the Tost. Government). the two
Governments shall. upon the request of either, consult respectir
the nature of the project or activity and its contribution to eco-
nomic and social development in The Gambia.

2. The procedure set forth in this Agreement shall apply only
with respect to guaranteed investments in projects or activities
approved by the Tlost Government.

Tf the Guaranteeing Government makes payment to any
investor under x guaranty issued pursuant io the present Agree-
ment. the Host Government shall, subject to the provisions of the
following paragraph, recognise the transfer to the Guaranteeing
Government of any currency, credits, assets, or investment on
account of which payment under such euaranty is made as well
as the succession of the Guaranteeing Government to any right.
tile. claim. privilege. or eanse of action existing. ov whieh may
arise. in connection therewith,

4. To the extent that the hove of the Host Goverment. partially
or wholly invalidate the acquisition of any interests in any prop-
erty within its ational territory by the Guaranteeing Govern-
ment, the Host Govermnent shall permit such investor and the
Guarantceing Government to make appropriate arrangements
pursuant to which sneh imterests are transferred to an entity per-
mitted to own such interests under the luvs of the Tost Govern-
ment. Tl umiuteeing Government shal] assert 0
than those of the transferring investor under the law
Government with respect to
foascontemplited in paragy

reater rights
of the Host
ny interests transferred or succeeded
phos. The Guaranteeing Government

PEAS ¢



3

(b) Any claim, arising out of investments guaranteed in accordance
with this Agreement, inst either of the two Govermnents, which,
m the opinion of the other, presents a question of public international
law shall, at the reqnest of the Government presenting the claim,
le submitted to negotiations. 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 Jaw, shall be
submitted for settlement to an arbitral tribunal selected in accordance
with paragraph (a) above. The arbitral tribunal shall base its decision
exclusively on the applicable principles and rules of public inter-
national law. Only the respective Governments may request fhe
arbitral procedure and participate in it.

v. This Agreement shall continue in force until six months from the

cute of receipt of a note by which one Government informs the othe:
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.
This Agreement shall enter into force on the date of the note by
which the Host Government communicates to the Guaranteeing Gov-
ernment 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 The Gambi
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 in
accordance with paragraph 8 above.

The Embassy of the United states of America aval
opportunity to renew to the Ministry of External Ait
ances of its highest consideration.

itself of this
‘als the ass

Tum Maixisrry or E)
Bathurst.
Fily!

ARN AL AFPAIRS,

4, 1967.



5

does, however, reserve its rights to assert. a claim in its sovereign
‘Apivity in the eventuality of a denial of justice or other question
of state responsibility as defined in international law,

4, Amounts in the lawful currency of the Host Govermuent and
credits thereof acquired by the Guaranteeing Government under
such guaranties shall be accorded treatment neither less nor lnore
favourable than that accorded to funds of nationals of the Guar-
anteeing Government deriving from investment activities like
those in which the investor has heen engaged, and such amounts
and eredits shall he freely available to the Guaranteeing Govern-
ment 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 shail be settled.
in so far as possible. throngh negotiations between the two Gov-
ernments. If such a difference cannot be resolved within a period
of three months following the request. for such negotiations, it
shall he submitted, at the request of either Government, to an ad
hoe arbitral tribal for settlement in accordance with the appli-
cable principles and rules of public international law. The arbitral
tribunal shall be established as follows: Eaeli Government shall
appoint one arbitrator: these two arbitrators shall d ignate a
President by coumon agreement who shall be a citizen of a third
State and he 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 appointinents. The arbitral
tribunal shall decide hy majority vote. Its decision shall he bind-
ing. Each of the Governments shall piy the expense of its member
and its representation in the procee dings 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 adept other regulations concerning the costs. Tn all
other matiers. the arbitral tribunal shall regulate its own
provedures,

(b) Any cla. arising out of investments euaranteed 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 <ulmitted to negotiations, Tf at the end
of three months following the request for Neyotiations the two
Goyerminents have not resolved the claim by mutual

reement,



TREATIES AND OTHER INTERNATIONA

ACTS SERIES

6392

INVESTMENT GUARANTIES

\greement Between the
Unrrep States OF AMERICA
and GAMBIA

Effected by Exchange of Notes
Dated at Bathurst July 24 and November 4.
1967



Gambia avails itself of this opportunity to renew to the Emb:
of the United States of America the assurances of its highest
consideration.

6

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 accordance with par: ph (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 pro-
cedure 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 guar
anties issued while the Agreement was in force shall remain in
force for the duration of those guaranties, in no case longer than
tiventy years, after the denunciation of the Agreement.

8. The foregoing provisions are acceptable to the Government of
the Gambia which considers this Note, together with that from
the Embassy of the United States of America dated 24th July,
1967, to which it is the reply, as constituting an Agreement
between the Government of The Gambia and the Government of
the United States of America on this subject, the Agreement to
come into force on the date of the present Note.

9, The Ministry of External Affairs of the Government. of The

Barucrsr, Tur Gampra.

4th November, 19

TEAS Gnor

WE GOVERNMENT PRUNTING OFTer es tucH


GAMBIA

Investment Guaranties

Agreement effected by exchange of notes
Dated at Bathurst July 24 and November 4, 1967;
Entered into force November 4, 1967.

The American Embassy to the Gambia Ministry of External Affairs

NO. 38

The Embassy of the United States of America presents its compli-
ments to the Ministry of External Affairs and has the honour to refer
to conversations which have recently taken place between representa-
tives of our two governments relating to investments in The Gambia
which further the development of the economic resources and pro-
ductive capacities of The Gambia and to guaranties of such invest-
ments 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 nationals of the Goverment of the United States of Amer-
ica (the Guaranteeing Government) propose to invest with the assist-
ance of guaranties issued pursuant to this Agreement in a project or
activity within the territorial jurisdiction of the Government of The
Gambia (the Host Governnent), 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
The Gambia.

2. The procedures set forth in this Agveement shall apply only with
respect to guaranteed investment= in projects or activities approved
hy the Host Government.

3. Tf the Guaranteeing Government makes payment to any investor
under a guaranty issued pursuant to the present Agreement, the Tost
Government shall. snbject to the provisions of the following para-
gvaph, recognize the transfer to the Guaranteeing Government of any
correney, credits, assets. or investment on aecount of which payment
under stich guaranty is made as well as the succession of the Guaran-
teeing Government to any 1 title, claim, privilege, or cause of
action existing, or which may arise, in connection therewith.

+. To the extent that the laws of the Host Government partially or
wholly imvalidate the acquisition of any interests in any property

Sycdsbous mn TIAN 63


to

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
Government. shall assert no greater rights than those of the trans-
fevring investor under the laws of the Host Government with respect
to any interests transferred ov succeeded to as contemplated in
paragraph 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 inter-
national law.

5. Amounts 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 favourable
than that accorded to funds of nationals of the Guaranteeing Govern-
ment. deriving from investment activities like those in which the
s been engaged, and such amounts and credits shall be
freely available to the Guaranteeing Government fo meet its expendi-
ures in the national territory of the Host Government.

(a) Differences between the two Governments concerning the
interpretation of the provisions of this Agreement shall he settled,
insofar as possible, through negotiations between the two Govern-
ments. Tf such a difference cannot be resolved within a period of three
months following the request for such negotiations, it shall be sub-
mitted, at the request of cither Gover nment, to an ad hoe arbitra
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 montlis of the date of receipt of either Govern-
ment'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 aecept such appointment or appointments, The arbitral tribunal
shall decide by majority vote. Tis decision shall be binding. Each of
the Governments shall pay fhe expense of its member and its repre-
sentation 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 ofber regulations
concerning the costs. Ly all other matters, the arbitral tribunal shall
regulate its own procedures.

YEAS Gone