4

The Singapore Minister for Foreign Affairs to the American
Consul in Charge

Minisrer ror Foruion AFrairs,
Srvcavore.
MFA. 390 : 261/7/17 25th March. 1966
Tue Consut-1n-Cuance,
Consulate-General of the United
States of America,
30 Hill Street,
Singapore 6.

Sir,

I have the honour to acknowledge receipt of your letter dated
25th March, 1966, which reads as follows:

“I have the honour to refer to discussions which have recently
taken place between representatives of our two governments
relating to investments in Singapore which further the development
of the economic resources and productive capacities of Singapore
and to guaranties of such investments by the Government of the
United States of America. I also have the honor to confirm the
following understandings reached as a result of those discussions.

1. When nationals of the Government of the United States of
America (the Guaranteeing Government) propose to invest with
the assistance of guaranties issued pursuant to this Agreement in
a project or activity within the territorial jurisdiction of the Gov-
ernment of Singapore (the Host Government), the two Govern-
ments shall upon the request of either one of them consult each
other on the nature of the project or activity and its contribution
to economic and social development in Singapore.

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.

3. If the Guaranteeing Government makes payment to any
investor under a guaranty issued pursuant to the present Agree-
ment, the Host Government shall, subject to the provisions of the
following paragraph, recognize the transfer to the Guaranteeing
Government. of any currency, credits, assets, ov investment. on
account of which payment under such guaranty is made as well as
the succession of the Guaranteeing Government. to any 1
claim, privilege, or cause of action existing, or which ma
connection therewith.

4. To the extent that the laws of the Host Government partial:
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 io which

TIAS 5999


3

(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
international 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
question of whether it presents a question of public international law,
shall be submitted for settlement to an arbitral tribunal selected in
accordance 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 for
the duration of those guaranties, in no case longer than twenty years,
after the denunciation of the agreement.

8. The provisions of the present Agreement shall apply to all
investment guaranties issued prior to the coming into force of the
present Agreement in respect of projects in Singapore approved by
either the Government of Malaysia or the Government of Singapore
under the Agreement between the United States of America and
Malaya of 1959, as amended.[?]

Upon receipt of a Note from Your Excelleney indicating that
the foregoing provisions are acceptable to the Government of Singa-
pore, 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, which shall enter into force
immediately.

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

Ricuarp H. Donato
His Excellency,
S. Rasaratnasr,
Minister for Foreign Affairs,
Singapore.

'TIAS 4214. 5850: 10 UST 776: 16 UST 1086.

TTAS 5999


5

such interests are transferred to an entity permitted to own such
interests under the laws of the Host Government. The Guarantee-
ing Government shall assert no greater rights than those of the
tranferring investor under the laws of the Host Government with
respect to any interests transferred or succeeded to as contemplated
in paragraph 8. The Guaranteeing Government. does, however,
reserve its rights to assert a claim in its sovereign capacity in the
eveutuality of a denial of justice or other question of state respon-
sibility 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
favourable than that accorded to funds of nationals of the Guar-
anteeing Government derived from investment activities like those
in which the investor 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
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 hoe arbitral tribunal for settlement in accordance with the ap-
plicable principles and rules of public international law. The
arbitral tribunal shall be established as follows: 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 receipt of either Government’s request for
arbitration. If the foregoing time limits are not met, either Gov-
ernment 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 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 rep-
resentation 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, arising out of investments guaranteed in
accordance with this Agreement, against either of the two Govern-
ments, which, in the opinion of the other, presents a question of
public international law shall, at the request of the Government

TIAS 5999,


TREATIES AND OTHER INTERNATIONAL ACTS SERIES

5999

INVESTMENT GUARANTIES

Agreement Between the
UNITED STATES OF AMERICA
and SINGAPORE

Effected by Exchange of Notes
Signed at Singapore March 25, 1966



6

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 question of whether it presents a question of
public international law, shall be submitted for settlement to an
arbitral tribunal selected in accordance with paragraph (a) above.
The arbitral tribunal shall base its decision exclusively on the ap-
plicable 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 guar-
anties issued 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. The provisions of the present Agreement shall apply to all
investment guaranties issued prior to the coming into force of the
present Agreement in respect of projects in Singapore approved
by either the Government of Malaysia or the Government of Singa-
pore under the Agreement between the United States of America
and Malaya of 1959, as amended.

Upon receipt of a Note from Your Excellency indicating that
the foregoing provisions are acceptable to the Government of Singa-
pore, 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, which shall enter into
force immediately.”

2. I have the honour to inform you that the Government of
Singapore confirms the understandings as set out in your letter and
will regard that letter and this reply as constituting an Agreement
between the Governments of the Republic of Singapore and the United
States of America, the Agreement to enter into force on the date of
this reply.

Accept, Sir, the assurances of my highest consideration.

S. Rasaratnas
(S. Rajaratnam)

TIAS 5999

U.S. GOVERNMENT PRINTING OFFICE-1966


SINGAPORE

Investment Guaranties

Agreement effected by exchange of notes
Signed at Singapore March 25, 1966;
Entered into force March 25, 1966.

The American Consul in Charge to the Singapore Minister for
Foreign Affairs

American Constnare Gr AL,
No. 67 Singapore. March 25. 1966.

ExceLLency :

T have the honor to refer to discussions which have recently taken
place between representatives of our two governments relating to
mvestments in Singapore which further the development of the eco-
nomic resources and productive capacities of Singapore and to
guaranties of such investments by the Government of the United
States of America. I also have the honor to confirm the following
understandings reached as a result of those discussions:

1. When nationals of the Government of the United States of
America (the Guaranteeing Government) propose to invest. with the
assistance of guaranties issued pursuant to this Agreement in a project
or_activity within the territorial jurisdiction of the Government of
Singapore (the Host Government), the two Governments shall, upon
the request of either one of them consult: each other on the nature of
the project or activity and its contribution to economic and social
development. in Singapore.

. 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.

3. 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.

64-108— 66 (1) TIAS 5999


2

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
interests under the laws of the Host Government. The Guaranteeing
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 sovereign 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 Guaranteeing Govern-
ment derived from investment activities like those in which the investor
has been engaged, and such amounts and credits shall be freely avail-
able 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 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 hoe arbitral
tribunal for settlement in accordance with the applicable principles
and rules of public international law. The arbitral tribunal shall be
established 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 International Court of Justice
to make the necessary appointment or appointments, and both Govern-
ments 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 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 other regulations concerning the costs. In all other matters,
the arbitral tribunal shall regulate its own procedures.

TIAS 5990