3

national law shall, at the request of the Government presenting the
claim, be 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 ques-
tion of whether it presents a question of public international Jaw, shall
be submitted for settlement to an arbitral tribunal selected in accord-
ance with paragraph (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 procedure 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 guaranties issued
while the Agreement was in force shall remain in force after the de-
nunciation of the Agreement for the duration of those guaranties pro-
vided that such duration shall not extend beyond twenty years from
the date of issuance.

8. 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. [*]

Dons at the city of Washington, in duplicate, this sixteenth day of
November, 1966.
FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
Dean Rusk

FOR THE GOVERNMENT OF MALTA:
G Bore Oxtvrer

‘Jan, 26. 1967,
TEAS 6205

U.S. GOVERNMENT PRINTING OFFICE: 1967


TREATIES 3... OTHER INTERNATIONAL ACTS schIES 6205

INVESTMENT GUARANTIES

Agreement Between the
UnitTeD STATES OF AMERICA
and Matta

Signed at Washington
November 16, 1966



MALTA

Investment Guaranties

Agreement signed at Washington November 16, 1966;
Entered into force January 26, 1967.

INVESTMENT GUARANTY AGREEMENT BETWEEN THE GOV-
ERNMENT OF THE UNITED STATES OF AMERICA AND THE
GOVERNMENT OF MALTA

The Government of the United States of America (the “Guarantee-
ing Government”) and the Government of Malta (the “Host
Government”) ;

Seeking to encourage private investments in projects which will
contribute to the development of Malta’s economic resources and pro-
ductive capacities through investment guaranties issued by the Guar-
anteeing Government,

Have agreed as follows:

1. When nationals of the Guaranteeing Government propose to
invest with the assistance of guaranties issued pursuant to this Agree-
ment in a project or activity within the territorial jurisdiction of the
Host Government, 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 Malta.

2. The procedures set forth in this Agreement shall apply only
with respect to guaranteed investments in projects or activities ap-—
proved by the Host Government for purposes of this Agreement. As
soon as a guaranty has been issued by the Guaranteeing Government,
the Guaranteeing Government shall notify the Host Government of
the issuance of such guaranty.

8. Ifthe Guaranteeing Government makes payment to any investor
under a guaranty issued pursuant to the present Agreement, the Host
Government shall, subject. to the provisions of the following para-
graph, recognize the transfer to the Guaranteeing Government of
any currency, credits, assets, or investment on account of which pay-
ment under such guaranty is made as well as the succession of the
Guaranteeing Government to any right, title, claim, privilege, or
cause of action existing, or which may arise, in connection therewith.

4. To the extent that the laws of the Host Government partially or
wholly invalidate the acquisition of any interests in any property
within its national territory by the Guaranteeing Government, the

TFAGE—67 (1) TIAS 6205


2

Host. Government: shall permit such investor and the Guaranteeing
Government to make appropriate arrangements pursuant to w. hich
such interests are transferred to an entity permitted to own such inter-
ests under the laws of the Host Government. The Guaranteeing Gov-
ernment shall assert no greater rights than those of the transferring
investor under the laws of the Host Government with respect to any
interests transferred or 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 favorable
than that accorded to funds of nationals of the Guaranteeing Govern-
ment deriving from investment activities like those in which the in-
vestor has been engaged, and such amounts and credits shall be freely
available to the Guaranteeing Government. 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 shall be settled,
insofar as possible, through negotiations between the two Govern-
ments. If sucha difference cannot be resolved within a period of three
months following the request for such negotiations, it shall be submit-
ted, at the request of either Government, to an ad hoc arbitral tribunal
for settlement in accordance with the applicable principles and rules
of public international law. The arbitral tribunal] shall be estab-
lished as follows: Each Government shall appoint one arbitrator:
these two arbitrators shall designate a President by common agree-
ment 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 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 Inter-
national Court of Justice to make the necessary appoint-
ment or appointments. and both Governments agree to accept such
appointment or appointments. The arbitral tribunal shall de-
cide by majority vote. Its decision shall be binding. Each of the
Governments shall pay the expense of its member and its representa-
tion 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 other regulations
concerning the costs. In all other matters, the arbitral tribunal shall
regulate its own procedures.

(b) Any claim, ng out of investments guaranteed in ac-
cordance with this Agreement, against either of the two Governments,
which, in the opinion of the other, presents a question of public inter-
TIAN 6205