TREATIES ANP OTHER INTERN «TIONAL ACTS SEHEES 2690

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ECONOMIC COOPERATION

Guaranties Under Public Law 472, 80th Congress,
as Amended

Agreement between the
Unrrep States oF AMERICA
and the NETHERLANDS

| e Effected by Exchange of Notes
iO Signed at Washington September 24
and October 7, 1952

@ Entered into force October 8, 1952

( onverTibility (Pact x) Curck

E KPROPR: lion!



COPY OF EXCHANGE OF NOTES BRIWEEN THE UNITED STATES AND THE NETHERLANDS
RE ECA GUARANTIES

NETHERIANDS EMBASSY
Washington 9, D. C.

FA/1677 October 7, 1952

Sir:

I have the honor to acknowledge the receipt of your note of
September 2th, 1952, reading as follows:

"I have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments relating to
Article III of the Economic Cooperation Agreement between the United
States of America and the Kingdom of the Netherlands, signed at The
Hague, on July 2, 1948, as heretofore amended or supplemented. As a
consequence of those conversations, the Government of the United States
of America proposes the following agreement to the Government of the
Kingdon of the Netherlands:

“The Governments of the Kingdom of the Netherlands and of the
United States of America will, upon the request of either of them,
consult respecting projects in the Kingdom of the Netherlands proposed
py nationals of the United States of America with regard to which
guaranties under Section 111(b)(3) of the Economic Cooperation Act of
198, as heretofore amended, have been made or are under consideration.
With respect to such guaranties extending to projects which are approved
by the Government of the Kingdom of the Netherlands in accordance with
the provisions of the aforesaid Section, the Government of the Kingdom
of the Netherlands agrees:

Na, 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 the Kingdom of the Netherlands
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 the Kingdom of the
Netherlands shall also recognize any transfer to the Government

The Honorable Dean Acheson,
Secretary of State,
Washington, D. C.


TIAS 2690 2

tion for loss covered by such guaranties received from any source
other than the Government of the United States of America;

b. That any claim against the Government of the Kingdom of the
Netherlands 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 deemed to be an espoused claim subject
to the procedures provided in Article X of the aforesaid Eco-
nomic Cooperation Agreement, whether or not the condition
stated in paragraph 8 of said Article X has been satisfied; pro-
vided, however, that such payment is made only after the recip-
jent of the payment has taken reasonable measures to pursue any
judicial or administrative remedies which may be available in
connection with its claim for a period of at least one year from
the initiation of the action on account of which the payment
is made,

c. That any guilders acquired by the Government of the United
States of America pursuant to the terms of any such guaranty
shall be accorded treatment with respect to convertibility which
is not less favorable than the treatment which would have been
accorded to the holder of the guaranty and that the Government
of the United States of America shall be permitted freely to use
guilders thus acquired for its administrative expenditures.

If this proposal is acceptable to the Government of the Kingdom
of the Netherlands, it is suggested that you reply by note. This note,
together with such reply, will constitute an agreement between our
two Governments on this subject, the agreement to enter into force
on the date of receipt of your reply note. [7]

Accept, Excellency, the renewed assurances of my highest consid-
eration.

For the Secretary of State:
James C. H. Bonsriour
His Excellency .
Dr. J. Herman van Rowen,
Ambassador of the Netherlands.

* Oct. 8, 1952.



The Secretary of State to the Netherlands Ambassador

Derartsent or State
‘Wasuincron
Sep 24 1952
Sm:

I have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments relating
to Article III of the Economic Cooperation Agreement between the
United States of America and the Kingdom of the Netherlands, signed
at The Hague, on July 2, 1948,[*] as heretofore amended or supple-
mented.[?] As a consequence of those conversations, the Government
of the United States of America proposes the following agreement
to the Government of the Kingdom of the Netherlands:

The Governments of the Kingdom of the Netherlands and of the
United States of America will, upon the request of either of them,
consult respecting projects in the Kingdom of the Netherlands pro-
posed by nationals of the United States of America with regard to
which guaranties under Section 111(b) (8) of the Economic Coopera-
tion Act of 1948, as heretofore amended,[*] have been made or are
under consideration. With respect to such guaranties extending to
projects which are approved by the Government of the Kingdom of
the Netherlands in accordance with the provisions of the aforesaid
Section, the Government of the Kingdom of the Netherlands 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 the Kingdom of the Netherlands
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 the Kingdom of the Netherlands
shall also recognize any transfer to the Government of the United
States of America pursuant to such guaranty of any compensa-

‘Treaties and Other International Acts Series 1791; 62 Stat., pt. 2, p. 2486.
“PIAS 2126; 1 UST 665; and TIAS 2285,
* 62 Stat. 144; 22 U. S.C. §1509(b) (3).

B2305—53 q@)



TIAS 2690 4

&,

‘c.

under svch a guaranty shall be deemed to be an espoused claim
subject to the procedures provided in Article X of the aforesaid
Economic Cooperation Agreement, whether or not the condition
stated in paragraph 8 of said Article X has been satisfied; pro-
vided, however, that such payment is made only after the
recipient of the payment has taken reasonable measures to
pursue any judicial or administrative remedies which may be
available in connection with its claim for a period of at least
one year from the initiation of the action on account of which
the payment is made.

That any guilders acquired by the Government of the United
States of America pursuant to the terms of any such guaranty
shall be accorded treatment with respect to convertibility which
is not less favorable than the treatment which would have been
accorded to the holder of the guaranty and that the Government
of the United States of America shall be permitted freely to use
guilders thus acquired for its administrative expenditures.

“If this proposal is acceptable to the Government of the Kingdom
of the Netherlands, it is suggested that you reply by note. This note,
together with such reply, will constitute an agreement between our
two Governments on this subject, the agreement to enter into force on
the date of receipt of your reply note.”

I have the honor to state that the Government of the Kingdom of
the Netherlands accepts the proposed agreement as outlined in your
above-mentioned note and considers that your note and this reply con-
stitute an agreement between the two Governments on this subject, the
agreement to enter into force on the date of receipt of this reply note.

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

J. H. van Rosen.

The Honorable Draw Acreson,

Secretary of State,
Washington, D. @.

©. 8. Govennuenr painting oprices 1933,

ce ee ge



1ssn388

Ministry of Foreign Affairs —

‘The Hague

Western Hemisphere Department

No. 6-7/242744

The Ministry of Foreign Affairs presents its compliments to the Embassy of the
United States of America and has the honour to refer to its Note No. 236220 of
September 28, 1987, and to conversations which have taken place between
representatives of the two Governments and of the Overseas Private Investment
Corporation (OPIC), on the subject of a simplified procedure regarding the issuance
of political risk insurance by OPIC to US business enterprises undertaking activities in
the Netherlands Antilles and Aruba.

The Ministry takes pleasure in informing the Embassy that the co:mpetent authorities
in the Kingdom of The Netherlands are now agreed that the simplified procedure
described in the points of understanding laid down in the abovementioned Note with
regard to Aruba, shall henceforth apply also to the issuance of political risk insurance
by OPIC for US business enterprises undertaking activities in the Netherlands Antilles,
in the same manner and under the same conditions as for Aruba (including the
Possible re-evaluation of this procedure after a period of one year), to wit:

- iC wili request approval for each individual activity by submitting the usual
information on the project in question simultaneously to the Ministry of Foreign
Affairs in The Hague and to the Government of the Netherlands Antilles in
Willemstad;

- If, within four weeks of the receipt of such request, the Ministry of
Foreign Affairs has not informed the US Embassy in The Hague that an objection
exists to the project, approval will be considered granted;

- All other matters regarding the project may be dealt with directly between OPIC
and the Government of the Netherlands Antilles;

The Embassy of the
United States of America

The Hague


TEXT OF THE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES
OF AMERTCA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS
REIATING TO UNITED STATES GOVERNMENT INVESTMENT GUARANTIES

Economic Cooperation Agreement; Signed at The Hague
July 2, 1948
Entered into Force July 2, 198.

seb

Excerpt re UeS. Government Investment Guaranties

Article ITI(Guaranties)

le The Governments of the United States of America and the
Netherlands will, upon the request of either Government, consult respecting
projects in the Netherlands proposed by nationals of the United States of America
and with regard to which the Government of the United States of America may
appropriately make guaranties of currency transfer under section 111(b) (3) of
the Economic Copperation Act of 1948. -

2e The Government of the Netherlands agrees that if the Government
of the United States of America makes payment in United States dollars to any
person under such a guaranty, any guilders, or credits in guilders, assigned
or transferred to the Government of the United States of America pursuant to
that section shall be recognized as property of the Government of the United
States of Americas

Article X1(Definitions)

As used in this Agreement: (a) The Netherlands means the
Kingdom of the Netherlands consisting of its territory in Europe, the Netherlands
Indies, Surinam and Curagaoe

See

Amendment, Effected by Exchange of Notes Signed at The Hague January 16
and February 2 1950.

The reference in paragraph 2 of Article III of the Economic
Cooperation Agreement, to recognize as the property of the Govern-
ment of the United States of any guilders or credits in guilders
assigned or transferred to it pursuant to section 111(b)(3) of the
Economic Cooperation Act of 1948 as heretofore amended, includes
recognition that the Government of the United States will be
subrogated to any right, title, claim, or cause of action existing
in connection with such guilders or credits in guilderse It is
understood that the provision of Article X of the Economic Cooperae
tion Agreement shall also apply to cases wherein the Government of
the United States actually has been subrogated to any right, title,
claim or cause of action of the type mentioned in this paragraphe


-~2-

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 Americas

TM, That any claim against the Government of the Kingdom of the
Netherlands 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 deemed to be an espoused claim
subject to the procedures provided in Article X of the
aforesaid Economic Cooperation Agreement, whether or not the
condition stated in paragraph 3 of said Article X has been
satisfied; provided, however, that such payment is made only
after the recipient of the payment has taken reasonable
measures to pursue any judicial or administrative remedies
which may be available in connection with its claim for a
period of at least one year from the initiation of the action
on account of which the payment is made.

tc, That any guilders acquired by the Government of the United
States of America pursuant to the terms of any such guaranty
shall be accorded treatment with respect to convertibility
which is not less favorable than the treatment which would
have been accorded to the holder of the guaranty and that
the Government of the United States of America shall be
permitted freely to use guilders thus acquired for its
administrative expenditures.

“If this proposal is acceptable to the Government of the Kingdom of
the Netherlands, it is suggested that you reply by note. This. note,
together with such reply, will constitute an agreement between our two
Governments on this subject, the agreement to enter into force on the
date of receipt of your reply note."

I have the honor to state that the Government of the Kingdom of the
Netherlands accepts the proposed agreement as outlined in your above-
mentioned note and considers that your note and this reply constitute
an agreement between the two Governments on this subject, the agreement
to enter into force on the date of receipt of this reply note.

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

/s/ da H. van Roujen


3 TIAS 2690

The Netherlards Ambassador to the Secretary of State

NETHERLANDS EMBASSY
WASHINGTON 8 D. C.

FA/10T7 Ocroner 7, 1952
Sm:

I have the honor to acknowledge the receipt of your note of
September 24th, 1952, reading as follows:

“J have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments relating
to Article III of the Economic Cooperation Agreement between the
United States of America and the Kingdom of the Netherlands, signed
at The Hague, on July 2, 1948, as heretofore amended or supple-
mented. Asa consequence of those conversations, the Government of
the United States of America proposes the following agreement to
the Government of the Kingdom of the Netherlands:

“The Governments of the Kingdom of the Netherlands and of
the United States of America will, upon the request of either of them,
consult respecting projects in the Kingdom of the Netherlands pro-
posed by nationals of the United States of America with regard to
which guaranties under Section 111 (b) (8) of the Economic Coopera-
tion Act of 1948, as heretofore amended, have been made or are under
consideration. With respect to such guaranties extending to projects
which are approved by the Government of the Kingdom of the Nether-
lands in accordance with the provisions of the aforesaid Section, the
Government of the Kingdom of the Netherlands agrees:

“q. ‘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 the Kingdom of the Nether-
Jands 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 aris-
ing in connection therewith. The Government of the Kingdom
of the Netherlands 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 guaran-
ties received from any source other than the Government of
the United States of America;

“p, That any claim against the Government of the Kingdom of
the Netherlands to which the Government of the United States
of America may be subrogated as the result of any payment



Statements to the effect that there exist no
objections to the granting of investment-guaranties
will be issued by the Government of the Kingdom but
only after consultation with and with the agreement
of the Government of the country in question.

Within the Kingdom, the latter Government will
decide upon the desirability of a certain investment
in its country; internationally however, only the
Government of the Kingdom will be in a position to act
and to accept responsibility within the framework of
the guaranty-agreement. Consequently, prospective
United States investors should approach the Ministry
of Foreign Affairs in the Hague and not the Governments
of either Surinam or the Netherlands Antilles.

It would be highly appreciated if the Department
would bring the above to the attention of the Investment
Guaranties Division and other appropriate United States

agencies.

Washington, D.C.
November 2, 1960.


CGE?
wel nyt

EA-14322

The Netherlands Embassy presents its compliments
to the Department of State and has the honor to inform
the Department of the following.

On April 15, 1960, the Investment Guaranties
Division of the International Cooperation Administration
announced that as of January 1, 1960, due to a statutory
amendment, investment guaranties would only be issued
for underdeveloped countries and areas, thus precluding
issuances of new guaranties for developed areas where
investment guaranty inter-government agreements had been
executed. Furthermore it was stated that although the
aforementioned statutory amendment excluded economically
developed countries for purposes of the Investment
Guaranties Program, guaranties were still available for
the underdeveloped “overseas dependencies" of a number
of countries, including the Netherlands.

The Netherlands Government is in agreement with
the above-quoted announcement as applied to both
Surinam and the Netherlands Antilles, with the
understanding, however, that in view of the provisions
of the Charter of the Kingdom of the Netherlands, the
term "overseas dependencies'will be read to mean "non-

European countries of the Kingdom."


- The efficacy of this simplified procedure will be evaluated by the competent
authorities in the Kingdom within a year of the date of this Note. Should they
conclude that the simplified procedure does not serve to further the economic
development of the Netherlands Antilles, the Kingdom may propose additional
modifications to the approval procedure.

It is to be understood that the Government of the Netherlands cannot accept that its
approval from time to time, whether explicit or implicit, of an activity to be covered
by OPIC, should entail liability for possible damages under the Agreement for
Economic Cooperation between the two States of July 2, 1948, as modified and
amended, in excess of the liability incumbent on the Netherlands by virtue of other

rules of international law which apply between the two States.

It is also to be understood that in the event of a disagreement regarding claims
stemming from the issuance of coverage, which disagreement presents a question of
international law that cannot be resolved through negotiations between the two
governments, the Netherlands Government and the United States Government will
arbitrate their differences before any arbitral tribunal mutually agreed upon or, in the
event of a failure to agree, before the International Court of Justice.

If, in the future, any improvements should be made in the simplified procedure
already applicable to Aruba, the Ministry reserves its right to request that such
improvements be made also in the procedure for the Netherlands Antilles, and

vice-versa.

The Hague, November 8, 1988



USA/Netherlands
Investment Guaranty Agreement

we
Ayendicnte Effceted by Exchange of Notes Signed at The Hague
March 7 and April 3, 1951.
The consultation referred to in Article III, paragraph 1,

shall refer to all guaranties authorized under Section III (b) (3)
of the Economie Cooperation Act of 1948, as heretofore amendede