treatment by the Government of the Hungarian People's
Republic no less favorable as to use and conversion than the
treatment to which such funds would be entitled in the hands
of the party under Coverage.

Such amounts and credits may be transferred by the Issuer
to any person or entity and upon such transfer shall be
freely available for use in accordance with local law by such
person or entity in the territory of the Hungarian People's
Republic.

The same treatment, and right of transfer and
disposition, shall be accorded to any amounts and credits in
the lawful currency of the Hungarian People's Republic which
may be accepted by the Issuer in settlement of obligations
with respect to Toans made by the Issuer for projects in the

Hungarian People's Republic.

ARTICLE 6

(A) Nothing in this Agreement shall limit the right of
the Government of the United States of America to assert a
claim under international law in its sovereign capacity, as
distinct from any rights it may have as Issuer.

(B) Any dispute between the Government of the United
States of America and the Government of the Hungarian
People's Republic regarding the interpretation of this

Agreement or which, in the opinion of one of the



@ 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

Go . Te lux
after the denunciatien of the Agreement. Ie} 1G Wye

This Agreement shall enter into force on the date on
which each government shall have notified the other that its

constitutional or other legal requirements with respect to

this agreement have been fulfilled.” °

perarars!

IN WITNESS WHEREOF, the undersigned, duly authorized

@ thereto by their respective governments, have signed this

Agreement.

Done at Budapest in duplicate, on the ninth day of

October, one thousand nine hundred eighty-nine.

For the Government of For the Government of

THE UNITED STATES OF AMERICA THE HUNGARIAN PEOPLE'S REPUBLIC

Tey .

be

—_



transfer or succession which occurs pursuant to Article

ala) hereof. Tax treatment of other transactions
conducted by the Issuer inthe Hungarian People's
Republic shall be determined by applicable law or
specific agreement between the Issuer and appropriate
fiscal authorities of the Government of the Hungarian

People's Republic.

ARTICLE 4

To the extent that the laws of the Hungarian
People's Republic partially or wholly invalidate or
Prohibit the acquisition from a party under Coverage of
any. interest in any Property within the territory of the
Hungarian People's Republic by the Issuer, the Government
of the Hungarian People's Republic shall permit such
party and the Issuer to make appropriate arrangements
Pursuant to which such interests are transferred to an
entity permitted to own such interests under the laws of

the Hungarian People's Republic.

ARTICLE 5
Amounts in the lawful currency of the Hungarian
People's Republic, including credits thereof, acquired by

the Issuer by virtue of such Coverage shall be accorded


~ Governments, involves a question of public international
law arising out of any project or activity for which
Coverage has been issued shall be resolved, insofar as
possible, through negotiations between the two
Governments. If at the end of three months following the
request for negotiations the two Governments have not
resolved the dispute by agreement, the dispute, including
the question of whether such dispute presents a question
of public international law, shall be submitted, at the
initiative of either Government, to an arbitral tribunal

for resolution in accordance with Article 7.

ARTICLE 7
The arbitral tribunal for resolution of disputes
pursuant to Article 6(b) shall be established and
function as follows:
(i) 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 arbitrator 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 absence of any other agreement, request


INVESTMENT GUARANTY AGREEMENT BETWEEN
THE GOVERNMENT OF THE UNITED STATES OF AMERICA
AND THE GOVERNMENT OF THE HUNGARIAN
PEOPLE'S REPUBLIC

The Government of the United States of America and
the Government of the Hungarian People's Republic,
desiring to encourage economic activities in the
Hungarian People's Republic which Promote the development
of the economic resources and productive capacities of
the Hungarian People's Republic and to provide for
investment insurance ’(including reinsurance) and?
guaranties which are backed in whole or in part by the
credit or public monies of the United States of America
and are administered either directly by the Overseas
Private Investment Corporation (“OPIC"), an independent
government corporation organized under the laws of the
United States of America, or pursuant to arrangements

between OPIC and commercial insurance, reinsurance and

other companies, have agreed as follows:



the Secretary-General of the International Centre

for the Settlement of Investment Disputes to make

the necessary appointment or appointments, and both
Governments agree to accept such appointment or
appointments.
(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.
(iii) Each of the Governments shall pay the

r ) 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
regulations concerning the costs, consistent with
the foregoing.

(iv) In all other matters, the arbitral tribunal

shall regulate its own procedures.

ARTICLE 8
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


dn tecemseecemauann

— eo save. +

ARTICLE 1

As used herein, the term “Coverage” shall refer >
to any investment insurance, reinsurance or guaranty >
which is issued in accordance with this Agreement by -
OPIC, by any successor agency of the United States of.
America or by any other entity or group of entities,
Pursuant to arrangements with OPIC or any successor
agency, all of whom are hereinafter deemed included in
the term "Issuer" to the extent of their interest as
insurer, reinsurer, or-guarantor in any Coverage, whether
as a party or successor to a contract providing Coverage
or as an agent for the administration of Coverage. OPIC,
or any successor agency, shall serve at all. times as
representative of the Issuer in its dealings with the

Government of the Hungarian People's Republic.

ARTICLE 2

The procedures set forth in this Agreement shall
apply only with respect to Coverage or direct loans,
relating to projects or activities registered with on
otherwise approved by the Hungarian People's Republic or
to Coverage or direct loans relating to projects with
respect to which the Hungarian People's Republic, or any
agency or political subdivision thereof, -has entered into

a contract involving the provision of goods or services

or invited tenders on such a contract.


ARTICLE 3

wee (a) If the Issuer makes payment to any party
under Coverage, the Government of the Hungarian People's
Republic shall, subject to the provisions of Article 4.
hereof, recognize the transfer to the Issuer of any
currency, credits, assets, or investment on account of
which payment under such Coverage is made as well as the
succession of the Issuer to any right, title, claim,
privilege, or cause of action existing, or which may
arise, in connection therewith.

(b) The Issuer shall assert no greater rights than
those of the transferring party under Coverage with
respect to any interests transferred or succeeded to
under this Article.

(c) The issuance of Coverage outside of the
Hungarian People's Republic with respect to a project or
activity in the Hungarian People's Republic shall not
subject the Issuer to regulation under the laws of the
Hungarian People's Republic applicable to insurance or
financial organizations.

(d) Interest and fees on loans made or guaranteed
by the Issuer shall be exempt from tax in the Hungarian
People's Republic. The Issuer shal] not de subject to

tax in the Hungarian People's Republic as a result of any