GRENADA

Investment Guaranties

Agreement signed at Saint Georges June 27, 1968;
Entered into force June 27, 1968.

INVESTMENT GUARANTY AGREEMENT

The Government of the United States of America (the “Guaran-
teeing Government”) and the Government of Grenada (the “Host
Government”) ;

Seeking to encourage private jnvestments in projects which will
contribute to the development of Grenada’s economic resources and
productive capacities through investment guaranties issued. by the
Guarantecing Government,

Have agreed as follows:

J. When nationals of the Guaranteeing Government propose to in-
vest 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 Grenada.

2. The procedures set forth in this Agreement shall apply only with
respect to guaranteed investments in projects or activities approved by
the Host Government. ; .

8. If the Guarantecing 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 payment
under such guaranty is made as well as the succession of the Guarantee-
ing 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
Host Government shall permit such investor and the Guaranteeing
Government to make appropriate arrangements pursuant to which
such interests are transferred to an entity permitted to own such in-
terests under the laws of the Host Government. The Guarantecing

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Government shall assert no greater rights than those of the transfer-
ring investor under the laws of the Host Government with respect
to any interests transferred or succeeded to as contemplated in para-
graph 3. The Guaranteeing Government does, however, reserve its
rights to assert a claim in its sovereien capacity in the eventuality of a
denial of justice or other question of state responsibility as defined in
international 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 Guarantecing 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 Guarantecing Governinent. 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, in-
sofar as possible, through negotiations between the two Governments.
If such a difference cannot be resolved within a period of three months
following the request for such negotiations, it shall be submitted, at the
request of either Government, to an ad hoc arbitral tribunal for settle-
ment in accordance with the applicable principles and rules of public
international law. The arbitral tribunal shall be established as fol-
lows: Each Government shall appoint one arbitrator; these two arbi-
trators shall designate a President by common agreement who shall
be 2 citizen of a third State ard be appointed by the two Govern-
ments. The arbitrators shall be appointed within two months and the
President within three months of the date of receipt of either Gov-
ernment’s request for arbitration, If the foregoing time limits are not
met, either Government may, in the absence of any other agreement, re-
quest the President of the International Court of Justice to make the
necessary appointment or appointments, and both Governments agree
to accept such appointment or appointments. The arbitral: tribunal
shall decide 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 con-
cerning the costs. In all other matters, the arbitral tribunal shall regu-
late its own procedures.

(b) Any claim, arising out of investments guaranteed in accord-
ance with this Agreement, against either of the two Governments,
which, in the opinion of the other, presents a question of public inter-
national law shall, at the request of the Government presenting the
claim, be submitted to negotiations: If at the end of three months fol-
lowing the request for negotiations the two Governments have not
resolved the claim by mutual agreement, the claim, including the ques-

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tion of whether it presents a question of public international Iaw, shail
be submitted for settlement to an arbitral tribunal selected in ac-
cordance 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 party to the Agreement. In such
event, the provisions of the Agreement with respect to guaranties is-
sued while the Agreement was in force shall remain in force for the
duration of those guaranties, in no case longer than twenty years after
the denunciation of the Agreement.

8. This Agreement shall enter into force on the date of signature.

In witness wuereor the respective representatives, duly authorized
for the purpose, have signed the present Agreement.

Done at Saint Georges, Grenada, in duplicate, this 27th day of
June 1968.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF

UNITED STATES OF AMERICA: GRENADA:
Frepric R. Mann : E. M. Gatry
United States Special Premier and Minister of
Representative to Grenada External Affairs

TIAS 6516
U.S, GovENNenT PrINTING oFTicZ: 1968

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