19

force shall remain in force for the duration of such coverage
but in no case longer than twenty years after the denunciation
of the agreement.

"Upon receipt of a note from you indicating that the fore-
going provisions are acceptable to the Government of Syria,
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, to enter into
force on the date of the note by which the Government of Syria
communicates to the Government of the United States of America
that this exchange of notes has been approved pursuant to its
constitutional procedures."

I have the honor to confirm that the above correctly sets
out the understanding reached between us.

Please accept, Mr. Ambassador, the assurance of my highest

consideration.

Dr. Mohamad al-Imadi
Minister of Economy
and Foreign Tyade

Honorable Richard W. ‘Murphy
Ambassador of the United States of America
Damascus, S.A.R.

TIAS 8707


dsl opWtl gles

By eb! oe Re Ul

Liesl ote *
toad Riba patel tLe

te beth,

+ ett LE os

eT Sa bw ke ae

eek Lobhel Ae aoa tee Ok Gal GUST oe Sie (E

TIAS 8707


investor 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 Syria.
Article 5

Amounts in the lawful currency of Syria, including credits
thereof, acquired by the issuer by virtue of such coverage shall
be accorded treatment by the Government of Syria no less favor-
able as to use and conversion than the treatment to which such
funds would be entitled in the hands of the covered investor.
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 by such person or entity in the territory of
Syria.
Article 6

(A) Any dispute between the Government of the United States
of America and the Government of Syria regarding the interpreta-
tion of this agreement or which, in the opinion of one of the
governments, involves a question of public international law
arising out of any project or investment 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 paragraph 6(B).

(B) The arbitral tribunal for resolution of disputes
pursuant to paragraph 6(A) shall be established and function

as follows:

TIAS 8707


17

by the issuer, the Government of Syria shall permit such
investor 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 Syria.
Article 5

“Amounts in the lawful currency of Syria, including credits
thereof, acquired by the issuer by virtue of such coverage shall
be accorded treatment by the Government of Syria no less favorable
as to use and conversion than the treatment to which such funds
would be entitled in the hands of the covered investor. 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 by such person or entity in the territory of Syria.
®Article 6

(A) Any dispute between the Government of the United States
of America and the Government of Syria regarding the interpreta-
tion of this agreement or which, in the opinion of one of the
governments, involves a question of public international law
arising out of any project or investment 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 paragraph 6(B).

"(B) The arbitral tribunal for resolution of disputes
pursuant to paragraph 6(A) shall be established and function

as follows:

TIAS 8707


— Tis

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Slane gf age yl ods pee
ta det lel fae ot y int pdt seall gpl!
PIS ose oe SL Seo ge yl sell It de Ge
rele ate gw pal WE ALL SU gibt de I gbysul Legs
Gabe he Sb she GA! gb Isl Lys ag le Gol ob

te! ch gael mw Doky

ws he et Gael he

Cie Gee pla Gall gull
Co) 7 pee be atu pos

Las deny bas Ge (OT) 1 ek Le eB Lu ett

ot GL Lap ghoul
Oe Sree ot LE on oan WIE Ub Lely gat of
WH DE I get Far UE glee!
Pu Sle es ISI oY Geta pet al kul

yew lal bie kG oS Qe Lh

eet

Sel SP gh ak eye we GY ye UT aye gay Sal!
ouall *hel yall Jest as Sil ate of. of

BS See Sb pagal te RDU

RHE LI! al out! wigs Gele Ge LG: pol Ree ae (1
Lima oss teleost! Raut re
Tae RG Lat Gal Lt te 2 Gee oh + bls Lele

Stee ULF tacy + aybsl!

SPL os Lee. Late LS eel Gy Ut ae (1
aU) AGS oe AUG gl petal
Ra EL Ss le ss ok Cage!

6 UT ss bw

f Rebs! Lobhe | oe Gel he ob Gs tl bla wee is (E

TIAS 8707

(T)

(y)


6

force shall remain in force for the duration of such coverage,
but in no case longer than twenty years after the denunciation
of the agreement.

Upon receipt of a note from you indicating that the fore-
going provisions are acceptable to the Government of Syria,
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, to enter into
force on the date of the note by which the Government of Syria
communicates to the Government of the United States of America
that this exchange of notes has been approved pursuant to its
constitutional procedures. [*]

Accept, Mr. Minister, the renewed assurances of my highest

consideration.
2 r
Paar 4
Va i A \
Richard W. Murpiy—

Ambassador of 'the United States
of America in Damascus

His Excellency Dr. Mohamad al-Imadi
Minister of Economy and Foreign Trade
Ministry of Economy and Foreign Trade
Damascus, S.A.R.

> Aug. 13, 1977.

TIAS 8707


{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 arbitrators shall be appointed within two
months and the president within three months of the date of re-
ceipt 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 the president of the International Court of Justice to
make the necessary appointment or appointments, and both govern-
ments agree to accept such appointment or appointments.

(IZ) 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. Only the two governments
may request the arbitral procedure and participate in it.

(III) Each of the governments shall pay the 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 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 coverage issued while the agreement was in

TIAS 8707


18

"(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 arbitrators shall be appointed within two
months and the president within three months of the date of re~
ceipt 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 the president of the International Court of Justice to
make the necessary appointment or appointments, and both govern-
ments 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. Only the two governments
may request the arbitral procedure and participate in it.

"(III) Each of the governments shall pay the expense of
its arbitrator and of its representation in the proceedings
before the arbitral tribunal; the expenses of the president
an@ 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 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 coverage issued while the agreement was in

TIAS 8707


Ry Ge Reeth co pe tt iets soll GE

Ve Ss ge Bad Balsl IGT geal we Rael

eee glut Potagey sfetolael of ake ad ah yee 2
Uggs Gh] po Lene ply goal!
bel gare ot glad of ies fae of Ge St peel ye

+ Leoce: Upestl dane if

ee ke Ugaell el Ge ott Sg at ot seal ol Ce)
s la if

oll ods ee al dts tes ot

ot eee 27

aes YF Re Vl Bane obras Ge Rebs!
cbske GIS Uys Loew ral Gp cine Lee

a geet Lee bel oS 2 Sr

t Co)

=“
aed oe bee

Ree Ble pe gf kee! cae fee ee Wes)! sleel yo

elt of oak oliuty Ub Real U5!

Uo joel oe ot

ppaeael Gi oatpll poset go
Leelee tele Clg FLL poeely peed A ae Eye El cb

eI ee Gat ob tl LE ee Be

Re Le ELS Reet! ob dn paedl Loe Ce

TIAS 8707


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 8707

STMENT GUARANTIES

Agreement Between the
UnitTED STATES OF AMERICA
and Syria

Effected by Exchange of Notes
Signed at Damascus August 9, 1976
with

Related Letter



ll

The Syrian Minister of Economy and Foreign Trade to the American
Ambassador

yaw oT a ewe

tp! al

pil pSsu PEL Gel Taal
1 pl

Litt shee oa bate cor gil obeldll Sl wil gf apt y
LE, Roles aylyll py Rar all hie Goble tl ge

oblast! ab elles ( gu bll Soll as be) gabll Jey Tund! tau!
Flat BLN Lalel Tage tl Fas ely cle: bye WS bey al
pop hs (APES eel) La thy LE Rol OL boss th Raat Healy, bl
Lag gh Reel Fans! CLINT Gals Gage cent Me agit
OPTS et) La ths bE Bold eb lel ate Cee

2 as
* re

oy |
eat of Lat sat Ye + seth eoball gall Fokly Gail pebil obs

tobebwl ab ine oll Gel po sul Zbl jal

y soll

Poalttotl vl aes

Re elle a

dean tt UL gileblut of ylatl
PLL age

Dee

Ree te Ee le ot pe LG Bf ogrell cl Lea

tisk tl

fot ow

TIAS 8707


10

eke Se

wot me ol EL that ee dpe UL
Li peo Lae ce Bett cbt Gaol pls baeye UG
Cs sae, le ST ae UL os +
goles Yo oth tell eb tal FUL REY dee Uh MLE! ty seal
+R ALJ! an Lk gy JE St 2

Tegal Gal tie Eyal pla of Gt es ia Ua PEL! ae
Les piles USudl of pas Tana! ob ipl Ue
Biel ale Upeal BL Geer gael Ls de ctl on
els iatl dole of Rie YI Fons ols GS Rye GGT Lt

+ Rye all oF ly

oo Vb eae Gas =

cet as bea yell dole b el

soll se
Lal bath
yell bath

Ryall Gell aya

TIAS 8707


7

Arabic Text of the American Note

EMBASSY OF THE
UNITED STATES OF AMERICA

VAYT oT A Gas

«gill sal Ge

Gas he on ety coe pil obo! Gil af of sal

el tut Role
Me bles ( gall Boll as ler) abel Ugee Syn! Real
Lilia! sf age Yl Saat obi sleb by. of Us eal ob bol
ghee te ld Roll eb lawl Rote Reale bl dyfalls GLL

lf cee ef te ee te ge ele (| PRE)

Vall pais bes silage Geblswl Je

Pestle bee tte ge ele Les A tiga tl Fadl ob sul
sky ylall geil ols gay ( ELT uty lt
Poet stot oat of laf spat ye + asslebaly

Po ebobwl ob aa al

—) ssl

oe of Wl ye Le Ge I 8

om helene ety Le ge tele sl
oles Les tage tl dastlels

tee Ata ae y te tee gale tial.

2 cwbll soby of gwbu sous Lsale

tA ates is fake oe ae

1G,

Like ble ase sae Glel Y tall ol.
Bye! Syl Lak ile athe but of ylatt
Pacha fei

2 at ow Pew
oe sh kes

TIAS 8707


3

with respect to coverage of investments relating to projects

or activities approved by the Government of Syria. In the case

of construction or service contracts entered into with the
Government of Syria or any agency or political subdivision thereof,
the project or activity shall be deemed to have heen approved by
the Government of Syria for purposes of the agreement.

Article 3

(A) If the issuer makes payment to any investor under cover-
age, the Government of Syria shall, subject to the provisions
of Article 4 hereof, recognize the transfer to the issuer of
any currency, redits, 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 investor with respect to any interests
transferred or succeeded to under this paragraph. 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.

(C) The issuance of coverage outside of Syria with respect
to investment in a project in Syria shall not subject the issuer
to regulation under the laws of Syria applicable to insurance
or financial organizations.

Article 4

To the extent that the laws of Syria partially or wholly
invalidate or prohibit the acquisition from a covered investor
of any interest in any property within the territory of syria

by the issuer, the Government of Syria shall permit such

TIAS 8707


14

Lb pe bee

Zoe! Gael son

sv tat pp Ulu es 5

Je sh yo gles oly Get wb Fas Tb let! Jee ole *Lt

+ REET LU ak LE Qa e

Rey) Gat Ue gel ple of Gl ye pe isu Pe! ae

cell

SS apne!

Pebigl use Qewl dys Lo re

Sige tl ohhatl ase Gao SB lis

Feat of 3

Gjliedl pola! bee Tee clot of a

eel os le

ges

TIAS 8707


16

“article 2

“The procedure set forth in the agreement shall apply only
with respect to coverage of investments relating to projects
or activities approved by the Government of Syria. In the case
of construction or service contracts entered into with the
Government of Syria or any agency or political subdivision thereof,
the project or activity shall be deemed to have been approved by
the Government of Syria for purposes of the agreement.

Article 3

(A) I£ the issuer makes payment to any investor under cover-
age, the Government of Syria 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 investor with respect to any interests
transferred or succeeded to under this paragraph. 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.

"(C) The issuance of coverage outside of Syria with respect
to investment in a project in Syria shall not subject the issuer
to regulation under the laws of Syria applicable to insurance
or financial organizations.

“Article 4

“To the extent that the iaws of Syria partially or wholly

invalidate or prohibit the acquisition from a covered investor

of any interest in any property within the territory of Syria

TIAS 8707


2

The American Ambassador to the Syrian Minister of Economy and
Foreign Trade

EMBASSY OF THE
UNITED STATES OF AMERICA

Damascus, August 9, 1976

Dear Mr. Minister:

I have the honor to refer to conversations which have
recently taken place between representatives of our two govern-
ments relating to investments in Syria which promote the
development of the economic resources and productive capacities
of Syria and to insurance (including reinsurance) and guaranties
of such investments 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. I also have the honor to
confirm the following understanding reached as a result of those
conversations.

Article 1

As used herein, the term "Coverage" shall refer to any
investment insurance or guaranty which is issued in accordance
with this agreement by OPIC, by any successor agency of the
United States of America or pursuant to arrangements with OPIC
or any successor agency, by any other entity or group of entities,
all of whom are hereinafter deemed included in the term “issuer”
to the extent of their interest as insurer or reinsurer in any
coverage, whether as a party or successor to a contract providing
coverage or as an agent for the administration of coverage.
Article 2

The procedure set forth in the agreement shall apply only

TIAS 8707


SYRIA

Investment Guaranties

Agreement effected by exchange of notes
Signed at Damascus August 9, 1976;
Entered into force August 13, 1977.

With related letter.

21-347 O—78 (1) TIAS 8707


12

JL See yates ol ot Siet sa, joel

oe Res FOL LY Geet we Ragu

et ple Polo sfololsl fae afin bes Js

po i etal Ganges Gall oo Lee geal pall

OE thal ee ot pled Ate Page of ge GY jase!

obese Upaell dow sf

Pe hE pel pe Ge me ott Goer Le, ot pot ol (0)
Be FOL ok eee ell te ct des gh uf

SS of The Faull ©

ol Eee ke
Well iy Ga ge :

Rl ye ee Fake GIS Meo Loew Gh all opt seg Le
tga Ley Ld oS 3 Gs

wge Elo Eye go gli) cae tage Ql Gea! jlael ol (2)
el tal of cab elite Gb tbl a

Haase ol
jaull ake of

tal gall) cee Ble!

—t Flt

Lines pl ba oe get Cl GIL as Us Y ible
etal tly hel elt chy + cath Gantt wal sal yo obect ose

Aya oh ot jasll Ge ym des of

Syl bol gf RT al ets LE oe tye J LE

TIAS 8707


15

English Text of the Syrian Note

Damascus, August 9, 1976

Mr. Ambassador:

I have the honor to acknowledge the receipt of your note
dated August 9, 1976, which reads:

"I have the honor to refer to conversations which have
recently taken place between representatives of our two govern-
ments relating to investments in Syria which promote the
development of the economic resources and productive capacities
of Syria and to insurance (including reinsurance) and guaranties
of such investments 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. I also have the honor to
confirm the following understanding reached as a result of those
conversations.

“article 1

"As used herein, the term "Coverage" shall refer to any
investment insurance or guaranty which is issue@ in accordance
with this agreement by OPIC, by any successor agency of the
United States of America or pursuant to arrangements with OPIC
ox any successor agency, by any other entity or group of entities,
all of whom are hereinafter deemed included in the term “issuer”
to the extent of their interest as insurer or reinsurer in any
coverage, whether as a party or successor to a contract providing

coverage or as an agent for the administration of coverage.

TIAS 8707