4

10. All obligations, rights or actions arising from the present
Agreement prior to its termination shall remain in force beyond the
date of termination of the present Agreement: until all obligations
in connection with any guaranties issued by the Government of the
United States of America in accordance with the present Agreement
shal] have been discharged.

11— The present Agreement shall replace and terminate the Agree-
ment between our two Governments, on the same subject, concluded
by an exchange of notes of March 23, 1955; Provided that, all obliga-
tions, rights, or actions arising from that Agreement prior to its
termination shall remain in force beyond the date of termination of
that Agreement until all obligations in connection with any guaran-
ties issued by the Government of the United States of America in
accordance with the said Agreement of March 23, 1955 shall have been
discharged.

I avail myself of this opportunity to renew to Your Excellency
the assurances of my highest consideration.

Joun J. Muccto

His Excellency
Jxsts Unpa Murti,
Minister of Foreign Relations,
Guatemala.

The Guatemalan Minister of Foreign Relations to the American
Ambassador

MINISTERIO DE RELACIONES EXTRRIORWS
REPUBLICA DE GUATEMALA
SHCCION DIPLOMATICA
DIRECCION DE TRATADOS
11-5/Am. 10

18460 Guaremana, 9 de agosto de 1960

Excenrncia:

Tengo el honor de referirme a la atenta nota de Vuestra Excelencia,
nimero 17, de esta misma fecha, por la que, como resultado de las
negociaciones habidas entre nuestros Gobiernos, y con el deseo de
fortalecer las amistosas relaciones que felizmente existen entre Jos dos
paises, y de fomentar la inversion en Guatemala de capitales privados
originarios de los Estados Unidos de América que puedan estimular
la economia guatemalteca, incrementar su produccién y el intercambio
comercial entre las dos Repiblicas, el Ilustrado Gobierno de Vuestra
Excelencia se sirve proponer al Gobierno de Guatemala el siguiente
Acuerdo:

1- Los Gobiernos de Guatemala y de los Estados Unidos de Améri-
ca, a peticién de cualquiera de ellos, llevarin a cabo consultas ¢ inter-

TIAS 5158,


9

[For the English language text of paragraphs 7-11, see ante,
pp. 2, 3 4]

T am happy to inform Your Excellency that the Government of
Guatemala accepts every part of the Agreement which the Govern-
ment of the United States has been good enough to propose, in the
terms contained in this note, which are the same as those of Your
Excellency’s note No. 17 to which I have had the honor to refer.

T avail myself of this opportunity to renew to Your Excellency
the assurances of my highest and most distinguished consideration.

[sear] J Uspa Muro.

His Excellency
Joun Josep Muccro,
Ambassador Extraordinary and Plenipotentiary
of the United States of America,
Guatemala.

The Guatemalan Minister of Foreign Relations to the American
Ambassador
MINISTERIO DE RELACIONES EXTERTORES
REPUBLICA DE GUATEMALA
SHCCION DIPLOMATICA
DIRECCION DE TRATADOS
H-5/Am, 10

20566 Guaremaa, 23 de agosto de 1962

Sefor Emrasapor:

Fengo el honor de dirigirme a Vuestra Excelencia en relacién al
Acuerdo sobre Garantfas de Inversiones formalizado entre nuestros
dos Gobiernos por el canje de notas de fecha 9 de agosto de 1960.

En la parte final de Ja Cléusula 6 de la versién inglesa del Acuerdo,
contenida en la nota de esa Embajada wimero 17, se dice: “Such
claim shall be settled or adjudicated in accordance with recognized
principles of law”. En la versién espafiola, contenida en ta nota de
este Ministerio niimero 18460, esta frase fué traducida asi: “Tal
reclamo se decidir’ o adjudicaré de conformidad con los principios
establecidos por la Ley”.

En opinién de mi Gobierno, esta frase en espafiol debe leerse asi:
“Tal reclamo se decidiré o adjudicaré de conformidad con principios
reconocidos de Derecho.”

En el caso de que el Ilustrado Gobierno de Vuestra Excelencia
estuviere de acuerdo en que esta es la traduccién correcta al espafiol
de esa frase, esta nota y la de respuesta de Vuestra Excelencia seran
consideradas como un acuerdo que enmienda, en el sentido indicado,
la frase fal de la citada Clausula 6 del texto espafiol del Acuerdo a
que me refiero.

TIAS 5158


6

situaciones analogas. Esos fondos estaran a la libre disposicién
del Gobierno de los Estados Unidos de América para gastos
administrativos en Guatemala.

6. Cualquier reclamo en contra del Gobierno de Guatemala en que
se hubiese subrogado el Gobierno de los Estados Unidos de América
conforme a las estipulaciones de este Acuerdo, quedara sujeto a
negociaciones directas entre los dos Gobiernos. Tal reclamo se
decidira o adjudicaré de conformidad con los principios establecidos
por Ja ley.[*]

7.- Compromiso Axnrrrat.— Los Gobiernos de Guatemala y de los
Estados Unidos de América, para el caso de que dentro de un tiempo
razonable no se pudiera Iegar a ningtm acuerdo por medio de las
negociaciones directas a que se refiere el parrafo anterior, contraen
el siguiente compromiso:

I- La reclamacién ser§ sometida a un Tribunal de Arbitraje,
cuando cualquiera de los Gobiernos signatarios lo solicite al otro.

IL- La solicitud de arbitraje deberé formularse por escrito.

Ti- El Tribunal de Arbitraje se integrara de la siguiente
manera:

a) Cada Gobierno designara un Arbitro, dentro del término.
de dos meses contados a partir de la fecha en que se haya
recibido la solicitud de Arbitraje;

b) Si después de transcurrido el término de dos meses a que se
refiere el pérrafo anterior, uno de los Gobiernos no hubiere
designado su Arbitro, el Gobierno que lo haya hecho podra
solicitar al Presidente de la Corte Internacional de Justicia que
designe el segundo Arbitro;

¢) Dentro del término de un mes, contado a partir de la fecha
en que haya sido designado el segundo Arbitro, los dos Arbitros
nombrados deberdn, 2 su vez, designar un tercer miembro que
tendra el caracter de Presidente del Tribunal;

d) Si después de transcurrido el término de un mes a que se
refiere el p&rrafo anterior, los dos Arbitros nombrados no
hubieren designado el tercer miembro del Tribunal de Arbitraje,
éste tercer miembro sera el que designe el Presidente de la Corte
Internacional de Justicia a solicitud de cualquiera de los
Gobiernos.

IV. Las materias del Arbitraje seran las siguientes:

a) Cualquier reclamacién en que se hubiese subrogado el
Gobierno de los Estados Unidos de América como resultado

* See exchange of notes, post, p. 10.

TIAS 5158


5

cambio de informaciones en relaciédn a proyectos para inversiones
de capitales substancialmente estadounidenses en la Reptiblica de
Guatemala, propuestos por ciudadanos de los Estados Unidos de
América, que contengan especificamente una solicitud de garantias
estatales que pueda otorgar el Gobierno de los Estados Unidos de
América de conformidad con su legislacién, para asegurar a los
inversionistas contra pérdidas resultantes de inconvertibilidad o de
expropiacién.

2. El Gobierno de los Estados Unidos de América o cualquier
organismo oficial que pueda ser designado para ese efecto, no
otorgara Jas garantias a que se refiere el pérrafo anterior a ningtin
proyecto que no tenga la aprobacién previa y por escrito del
Gobierno de Guatemala.

3.- En caso de que el Gobierno de los Estados Unidos de América
efectiie pagos en délares a cualquier persona en virtud de la garantia
relativa a inconvertibilidad, el Gobierno de Guatemala reconoceré
Ja transferencia al Gobierno de los Estados Unidos de América de
cualquier cantidad de quetzales, o créditos en quetzales, por cuenta
de los cuales se haya efectuado tal pago, y la subrogacién en favor
del Gobierno de los Estados Unidos de América de cualquier derecho
del inversionista que exista en relacién a dichas cantidades o
créditos.

4. Si por razén de la garantia relativa a la expropiacién, el
‘Gobierno de los Estados Unidos de América efecttia pagos en
délares a cualquier persona, el Gobierno de Guatemala reconocera,
por ese mismo hecho, la transferencia al Gobierno de los Estados
‘Unidos de América, de todo derecho, titulo o interés que esa. persona
pudiera tener, proveniente de la inversién por Ja cual el pago fué
realizado, y la subrogacién del Gobierno de los Estados Unidos de
América en cualquiera accién por reclamo que la indicada persona
pudiera tener o que existiera en relacién con los mismos. Es en-
tendido que la transferencia y la subrogacién a que se refiere el
presente parrafo terminarén automdticamente, en el momento en
que el Gobierno de Guatemala efecttie el pago, como resultado de
negociacién directa, que sea aceptado por el Gobierno de los Estados
Unidos de América como Ja indemnizacién, 0 en el momento en que
el Gobierno de Guatemala efecttie el pago en ejecucién de un fallo
arbitral.

5. El Gobierno de los Estados Unidos de América comunicaré
inmediatamente, por escrito, al Gobierno de Guatemala, todo pago
que haya efectuado de conformidad con los parrafos anteriores.
Cualquier suma en quetzales adquirida por el Gobierno de los
Estados Unidos de América conforme a las transferencias 0 subro-
‘gaciones que se indican en los pérrafos anteriores gozara de trato
no menos favorable que el que reciben los fondos de cualquier
ciudadano de los Estados Unidos de América que se encuentren en

TIAS 5158


8

Me complace hacer del conocimiento de Vuestra Excelencia, que el
Gobierno de Guatemala acepta, en todas sus partes, el Acuerdo que se
sirve proponer el Ilustrado Gobierno de los Estados Unidos de
América, en los términos que figuran en la presente nota y que son los
mismos que se expresan en la nota de Vuestra Excelencia, nfimero 17,
aque he tenido el honor de referirme.

Aprovecho la oportunidad para reiterar a Vuestra Excelencia las
seguridades de mi consideracién més alta y distinguida.

. J Unpa Mouriit0.
{span}

Excelentisimo Sefior Joun Josers. Muccto,
Embajador Extraordinario y Plenipotenciario
de los Estados Unidos
de América,
Ciudad

Translation

MINISTRY OF FOREIGN RELATIONS
REPUBLIC OF GUATHMALA
DIPLOMATIC SECTION
TREATY OFFICE

Ii-5/Am, 10
18460 Guaremaxa, August 9, 1960
Excuntency:

T have the honor to refer to Your Exceliency’s courteous note No. 17,
of today’s date, in which, as a result of negotiations that have taken
place between our Governments, and with the desire to strengthen
the friendly relations happily existing between our two countries,
and to promote the investment in Guatemala of private capital origi-
nating in the United States of America that can stimulate the Guate-
malan economy and increase its production as well as trade between
the two Republics, Your Excellency’s Government: is pleased to pro-
pose the following Agreement: to the Government of Guatemala:

[For the English language text of paragraphs 1-5, see ante,
pp. 1, 2.]

6. Any claim against the Government of Guatemala to which the
Government of the United States of America has been subrogated
pursuant to the provisions of this Agreement shall be the subject of
direct negotiations between the two Governments. Such claim shall
be settled or adjudicated in accordance with the principles established
by law.[?]

* See exchange of notes, post, p. 10.

TIAS 5158


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 5158

INVESTMENT GUARANTIES

Agreement Between the
Unrrep States or AMERICA
and GUATEMALA

Effected by Exchange of Notes
Signed at Guatemala August 9, 1960

with

Related Exchange of Notes
Signed at Guatemala August 23
and 27, 1962



i

Accept, Excellency, the renewed assurances of my highest and most
distinguished conside

J Unpva Monttro.

His Excellency
Joun O. Brun,
Ambassador Extraordinary and Plenipotentiary
of the United States of America,
City.

é

The American Ambassador to the Guatemalan Minister of Foreign
Relations

No. 34 GuaTEeMaLa, August 27, 1962

Excrrtency:

T have the honor to refer to Your Excellency’s note No. 20566 of
August 23, 1962, regarding the Investment Guaranty Agreement of
August 9, 1960.

My Government has authorized me to state that it is in agreement
with Your Government that the correct Spanish language version of
the last sentence of Article 6 of the Agreement should read: “Tal
reclamo se decidiré o adjudicara de conformidad con los principios
reconocidos de Derecho.” The exchange of notes accomplished by
Your Excellency’s note No. 20566 and this note therefore constitute,
as Your Excellency proposed, an agreement to amend the last sentence
of Article 6 in the Spanish version of the Investment Guaranty Agree-
ment in the sense indicated above,

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

Joun O, Beri

His Excellency
Jesus Unpa Murio,
Minister for Foreign Relations,
Guatemala.

TIAS 5158

U.S. GOVERNMENT PRINTING OFFICELI62


10

Aprovecho Ia oportunidad para reiterar a Vuestra Excelencia las
seguridades de mi consideracién més alta y distinguida,

J Uxpva Muri.

Excelentisimo Sefior Joun O. Bera,
Embajador Extraordinario y Plenipotenciarie de los
Estados Unidos de América,
Ciudad.

Translation

MINISTRY OF FOREIGN RWLATIONS
REPUBLIC OF GUATEMALA
DIPLOMATIC DIVISION
TREATY SECTION
TI-5/Am. 10

20566 Guatemata, August 23, 1962

Mr. Ampassapor:

I have the honor to address Your Excellency with reference to the
Investment Guaranty Agreement formalized between our two Govern-
ments by the exchange of notes dated August 9, 1960.

The last part of Clause 6 of the English version of the Agreement,
contained in your Embassy’s note No, 17, reads: “Such claim shall be
settled or adjudicated in accordance with recognized principles of
Jaw.” In the Spanish version, contained in this Ministry’s note No.
18460, this sentence was translated as follows: “Tal reclamo se de-
cidira o adjudicaré. de conformidad con los principios establecidos por
la Ley.” [4]

In the opinion of my Government, this sentence should read as fol-
lows in Spanish: “Tal reclamo se decidird o adjudicara de conformi-
dad con principios reconocidos de Derecho.” [?]

In the event that Your Excellency’s Government agrees that this is
the correct Spanish translation of that sentence, this note and Your
Excellency’s note in reply shall be considered an agreement amending,
as indicated, the last sentence of Clause 6 of the Spanish text of the
Agreement to which I refer.

*“Such claim shall be settled or adjudicated in accordance with the principle
established by law.”

* “Such claim shall be settled or adjudicated in accordance with recognized
principles of law.”

TIAS 5158


7

de los pagos cubiertos por la garantia relativa a inconverti-
bilidad a que se refiere el presente Acuerd

b) Cualquier reclamacién en que se hubiese subrogado el
Gobierno de los Estados Unidos de América como resultado de
los pagos cubiertos por la garantia relativa a expropiacién a
que se refiere el presente Acuerdo.

V.— Las bases del Arbitraje serin las siguientes:

a) El Tribunal de Arbitraje sefialaré un plazo de tres meses
para que se presente la demanda, de la cual dard audiencia a Ja
parte demandada por otro término igual;

b) Las partes presentarfn sus respectivas pruebas juntamente
con la demanda y la contestacién ;

ce) E] Tribunal de Arbitraje podré pedir, para mejor resolver,
Ja documentacién que estime necesaria o disponer que se prac-
tiquen las diligencias que estime convenientes; para el efecto
fijaré un término mAximo de tres meses;

d) El Jaudo del Tribunal de Arbitraje serd definitivo e
inapelable.

8— La presente nota y la de Vuestra Excelencia, de esta misma
fecha, constituyen un Acuerdo entre el Gobierno de Guatemala y el
de los Estados Unidos de América que entrard en vigor en la fecha
de una nota en que el Gobierno de Guatemala notifique al Gobierno
de los Estados Unidos de América que el presente Acuerdo ha sido
ratificado de conformidad con los procedimientos constitucionales de
la Repiblica de Guatemala.

9.- El presente Acuerdo permanecerd en vigencia hasta que hayan
transcurrido noventa dias a partir de la fecha en que uno de los
Gobiernos haya comunicado por escrito al otro, su intencién de darlo
por terminado.

10. Todas las obligaciones, derechos 0 acciones emanadas del pre-
sente Acuerdo con anterioridad a su terminacién, continuarén en
vigencia después de la fecha de la terminacién del presente Acuerdo
hasta que se hubiesen cumplido todas Jas obligaciones relacionadas
con cualquier garantia otorgada por el Gobierno de los Estados
Unidos de América de conformidad con este Acuerdo.

11 El presente Acuerdo sustituira y dar& por terminado el Acuerdo
celebrado entre nuestros dos Gobiernos, sobre Ja misma materia,
mediante el canje de notas de 23 de marzo de 1955. Sin embargo,
todas las obligaciones, derechos 0 acciones emanadas de ese Acuerdo
con anterioridad a su terminacién, continuarén en vigencia después
de Ia fecha de Ia terminacién de ese Acuerdo hasta que se hubiesen
cumplido todas las obligaciones relacionadas con cualquier garantia
otorgada por el Gobierno de los Estados Unidos de América de
conformidad con dicho Acuerdo del 28 de marzo de 1955.

TIAS 5168


3

b) Tf at the end of the two-month period mentioned in the preced-
ing clause one of the Governments has not appointed its arbitrator,
the Government that has made its appointment may request the
President of the International Court of Justice to appoint the second
arbitrator;

¢) Within a period of one month from the date on which the second:
arbitrator has been appointed, the two arbitrators shall appoint a
third member, who shall act as President of the Tribunal;

d) If at the end of the one-month period referred to in the pre-
ceding clause the two arbitrators have not yet appointed the third
member of the Arbitration Tribunal, this third member shall be-a
person appointed by the President of the International Court of
Justice at the reauest of either Government.

IV. The matters for arbitration shall be as follows:

a) Any claim to which the Government of the United States of
America has been subrogated as a result of payments covered by the
guaranty relating to inconvertibility referred to in this Agreement;

b) Any claim to which the Government of the United States of
America has been subrogated as a result of payments covered by the
guaranty relating to expropriation referred to in this Agreement.

V. The bases for arbitration shall be as follows:

a) The Arbitration Tribunal shall set a period of three months
ing the claim, and the defendant shall be given a like period
vering ;

b) The parties
and the reply;

ec) In order better to decide the case, the Arbitration Tribunal may
request any documents it deems necessary, or order any steps taken
which it considers appropriate; for this purpose it shall fix a maxi-
mum period of three months;

d) The decision of the Arbitration Tribunal shall be final and
non-appealable. .

shall submit their evidence together with the claim

8. The present note and Your Excellency’s reply of the same date
constitute an agreement between the Government of the United States
of America and the Government of Guatemala which shall enter into
force [7] on the date of a note in which the Government of Guatemala
informs the Government of the United States of America that the
present Agreement has been ratified in conformity with the constitu-
tional procedures of the Republic of Guatemala,

9. The present Agreement shall remain in force until the expiration
of a period of ninety days from the date on which either Govern-
ment gives the other written notice of its intention to consider the
Agreement terminated.

* Aug. 29, 1962.

TIAS 5158


2

inconvertibility the Government of Guatemala shall recognize the
transfer to the Government of the United States of America of any
amounts in quetzales, or credits in quetzales, on account of which such
payment has been made, and the subrogation of the Government of
the United States of America to any right of the investor which
existed in relation to such amounts or credits.

4. If the Government of the United States of America makes
payment in dollars to any person under the guaranty relating to
expropriation, the Government of Guatemala shall recognize, by that
act, the transfer to the Government of ihe United States of America
of any right, title, or interest of such person resulting from the
investment on account of which such payment was made, and the
subrogation of the Government of the United States of America to
any action or claim that such person may have or that may exist in
connection therewith. It is understood that the transfer and subro-
gation to which the present paragraph refers shall terminate auto-
matically upon payment by the Government of Guatemala which is
accepted by the Government of the United States of America as the
appropriate indemnity as a result of direct negotiation, or upon pay-
ment by the Government of Guatemala pursuant to an arbitral award.

5. The Government of the United States of America shall imme-
diately notify the Government of Guatemala, in writing, of all pay-
ments made according to the aforementioned paragraphs. Any sums
in. quetzales acquired by the Government of the United States of
America in accordance with the transfers or subrogations which have
been. mentioned in the aforementioned paragraphs shall receive treat-
ment no less favorable than that received by funds of any citizens of
the United States of America in comparable situations. These funds
shall be at the free disposition of the Government of the United States
of America for administrative expenditures in Guatemala.

6.- Any claim against the Government of Guatemala to which the
Government of the United States of America has been subrogated
pursuant to the provisions of this Agreement shall be the subject of
direct negotiations between the two Governments. Such claim shall
be settled or adjudicated in accordance with recognized principles of
law.

7.- Arprrration Acremaent. In the event that no agreement can
be reached within a reasonable time through the direct negotiations
referred to in the preceding paragraph, the Governments of the United
States of America and of Guatemala agree on the following procedure :

I. The claim shall be submitted to an Arbitration Tribunal when
either signatory Government so requests of the other.

II. The request for arbitration must be made in writing.

Ii. The Arbitration Tribunal shall be set up as follows:

a) Each Government shall appoint an arbitrator within a period
of two months from the date on which the request for arbitration is
received;

TLAS 5158


GUATEMALA

Investment Guaranties

Agreement effected by exchange of notes
Signed at Guatemala August 9, 1960;

Entered into force August 29, 1962,

With related exchange of notes

Signed at Guatemala August 23 and 27, 1962.

The American Ambassador to the Guatemalan Minister of Foreign
Relations

Empassy oF THE
Unrrep Srargs or AMERICA
No. 17 Guatemala, August 9, 1960.

Excrramncy:

As a result of negotiations that have taken place between our Gov-
ernments, and with the desire to strengthen the friendly relations
happily existing between our two countries, and to promote the in-
vestment in Guatemala of private capital originating in the United
States of America which could stimulate the Guatemalan economy
and increase its production as well as trade between the two Republics,
I take pleasure in proposing the following agreement to Your Excel-
lency’s Government:

1~ The Governments of the United States of America and of
Guatemala, at the request of either of them, shall consult and exchange
information with respect to projects for investments of substantially
United States capital in the Republic of Guatemala proposed by cit-
izens of the United States of America and specifically containing a
request for governmental guaranties which may be authorized by the
Government of the United States of America pursuant to its legis-
lation, in order to insure investors against losses resulting from
jnconvertibility or expropriation.

2. The Government of the United States of America or any official
agency which may be designated for this purpose, shall not authorize
the guaranties referred to in the preceding paragraph for any project,
which has not had the prior written approval of the Government
of Guatemala.

3 If the Government of the United States of America makes
payment in dollars to any person under the guaranty relating to

90719—62 a) TIAS 5158