oy
oN

-8-

Article LIT
(Guarenties)

1, ‘The Governments of the United States of America and
Greece will, upon the request of either Government, consult
respecting projects in Greece proposed by nationals of the
United States of America and with regard to which the Govern-
ment of the United States of America may appropriately make
guaranties of currency transfer under Section 111(b)(3) of the
Economic Cooperation Act of 1948,

2. The Government of Greece agrees thet if the Govern-
ment of the United States of America makes paynent in United
States dollars ‘to any person under such e gusranty, any drnachmae,
or credits in drachmae, assigned or trensferred to the Govern-
ment of the United States of America pursuant to that section
shall be recognized as property of the Government of the United

States of America,



= 29 -

’ Arbicle Xt
(Relation to Agreement of June 20, 1947)

‘The Government of the United States of America and the Governnant
of Greece hereby agree that it is their intention that the present
Agreenent shall be considered to be in addition to, and not in sub-
stitution for, the Agreement between the Government of the United
States of America and the Governnent of Greeca, executed June 20,
1947, (including the provisions of a Note, dated Jime 15, 1947, of
the Government of Greece to the Government of the United States of
America which is referred to in said Agreement of June 20, 1947)
relating to assistance to be rendered to the Government of Greece
under the Act of Congress of the United States of Auerica approved
Mey 22, 1947 (Public lew 75, 80th Congress), and any Acts anendatory
or supplenentary thereto; and the various undertakings of the
Government of Greece therein contained, insofar as they relate to
non-military matters, shall apply equally to all assistance rendered
by the Government of the United States of America to the Government
of Greece under the present Agreement relating to the participation
of the Government of Greece in the European nzcovery progran, except
as may hereafter be specifically agreed to bj; the Government of the
United States of America and the Goveranent cf Greece.


-25-

American Mission for Aid to Greece end its personnel in Greece,

The Government of Greece will further accord appropriate courtesies
to the members and staff of the Joint Committee on Foreign Economic
Cooperation of the Congress of the United States of America, and
grent them the facilities and assistance necessary to the effective
performance of their responsibilities,

4, The Government of Greece, directly and through its repre-
sentatives on the Organization for European Economic Cooperation,
will extend full cooperation to the Special Mission, to the United
Stetes Special Representative in Burope and his staff, and the
members and etaff of the Joint Committee. Such cooperation shall
include the provision of all information and facilities, necessary
to the observation and review of the carrying out of this Agreement,

including the use of assistance furnished under it,


-ii-
according to its laws and regulations, are not
within the scope of such grants, or to products or
conditions of production, use or sale which are like~
wise not the subjects of such grants; and
(g) such other practices as the two Governnents say agree
to include.

4e It is wmderstood that the Government of Greece is obligated
to take action in particular instances in accordance wit mrayraph 3
of Article II only after appropriate investigation or examinations

5. It is widerstood that the phrase in Article V “after due
regard for the reasonable requirenents of Greece for donestic use"
would include the maintenance of reasonable stocks of the iaterials
concerned and that the phrase "co:mercial exort" might include barter
transactions. It is also understood that arrangements negotiated
wider Article V might appropriately include provision for consulta-
tdon, in accordance with the Winciples of Article 3 of the liavana
Charter for an International Trade Organization, in the event that
etockpiles are liquidated.

6. It is understood that the Governnent of Greece will not be
requested, under paragraph 2 (a) of Article VII, to furnish detailed
information about minor projects or confidential commercial or tech-
nical information the disclosure of which would injure legitimte

commercial interests.

=



-2-+

Considering also that, in furtherance of these principles,
the Government of the United States of America has enected the
Beonomic Cooperation Act of 1948, providing for the furnishing of
assistance by the United Stetes of America to nations participating
in a joint program for Buropean recovery, in order to enable such
nations through their own individual and concerted efforts to
become independent of extraordinary outside economic assistance;

faking note that the Government of Greece has alreedy expressed
its adherence to the purposes and policies of the Economic Coopera-
tion Act of 1948;

Desiring to set forth the understandings which govern the furn-
nishing of assistance by the Government of the United States of
America under the Economic Cooperation Act of 1948, the receipt of
such assistance by Greece, and the measures which the two Govern-
ments will teke individually and together in furthering the recovery
of Greece as an integral part of. the joint program for Zuropean
recovery;

Have agreed es follows:


-12-

ere referred to in Article VI.

6, The Government of Greece may draw upon any remaining
balance in the Special Account for such purposes as may be
agreed from time to time with the Government of the United
States of America. In considering proposals put forward by
the Government of Greece for drawings from the Special Account,
the Government of the United States of America will take into
account the need for promoting or maintaining internal monetary
and financial stabilization in Greece and for stimulating
productive activity and international trade and the exploration
for and developmant of new sources of wealth within Greece,
including in particular:

(a) expenditures upon the exploration for and development
of additional production of materiale which may be reouired
in the United States of America because of deficiencies or
potential deficiencies in the resources of the United States
of America; and

(b) expenditures upon projects or programs, including
those which are part of a comprehensive nrorrem for the
development of the productive capacity of Greece and the
other yerticipating countries, and projects or progrems the
external costs of which are being covered by assistance

rendered by the Government of the United States of America


-H-

Article XU
(Gatry inte Fores, Amendment, Duratian)

le ‘This Agreenent shall be subject to ratification by the
Government of G reece. It shall become effective on the day on
which notice of such ratification is given to the Government of the
United States of America. Subject to the provisions of parugraphs
2 and 3 of this Article, it shall remain in force until Jine 00,
1953, and, unless at least six months before June 30, 1953, either
Government shall have given notice in writing to the other of in-
tention to terminate the Agreement on that date, it shall remain in
force thereafter until the expiration of six months from the date
on which such notice shall have been given.

2. If, during the life of this Agreement, either Government,
should consider thers has been a fundamental change in the basic
assumptions underlying this Agreement, it shall so notify the other
Government in writing and the two Governments will thereupon consult
with a view to agreeing upon the amendment, modification or ter
mination of this Agreenent. If, after three months from such noti~
fication, the two Governments have not agreed upon the action to be
taken in thé cireusstences, either Government may give notice in
writing to the other of intention to terminate this Agreement.

Then, subject to the provisions of paragraph 3 of this Article, this
Agreenent shall terminate either:
(a) six months after the date of such notice of intention

to terminate, or



TREATIE AND OTHER INTERNATIONAL Ai 3} SERIES 2568

ECONOMIC COOPERATION

Guaranties Under Public Law 472, 80th Congress,
as Amended

Agreement between the
Unirep StaTes or AMERICA
and GREECE

@ Effected by Exchange of Notes
Signed at Washington April 21
and 23, 1952

@ Entered into force April 29, 1952

Conveatiby ity (Rost) + Expeeprraben


Sy

-23-

ticle VIII
(Publicity)

1, The Governments of the United States of America and Greece
recognize that it is in their mutual interest that full publicity
de given to the objectives and progress of the joint program for
Baropean recovery and of the actions taken in furtherance of that
program. It is recognized that wide dissemination of information on
the progress of the program is desirable in order to develop the
sense of common effort and mutual aid which are essential to the
accomplishment of the objectives of the progren.

2. ‘The Government of the United States of America will encourage
the dissemination of such information and will make it available to
the media of public information,

3, The Government of Greece will encourage the dissemination of
such informetion both directly end in cooperation with the Organization
for European Economic Cooperation, It will make such informetion
available to the media of public informetion and take all practicable
steps to ensure that appropriate facilities are provided for such
dissemination, It will further provide other participating countries
and the Organization for European Economic Cooperation with fall
information on the progress of the program for economic recovery.

4, The Governnent of Greece will make public in Greece in each
calendar quarter, full statements of operetions under this Agreement, :

including information as to the use of funds, commodities and services

received,



Article IV
(Local Currency)

1. The provisions of this Article shall apply only with respect
to assistance which may be furnished by the Government of the United
States of America on a grant basis.

2. he Government of Greece will establish a special account
in the Bank of Greece in the nane of the Government of Greece
(hereinafter called the Speciel Account) and will sake deposits in
drachmae to this account as follows:

(a) The unencumbered balance at the close of business on the day
of the signature of this Agreement in the account in the Bank of Greece
in the name “Greek State-Relief Drachmas Fund" established pureuant to
the Agreement between the Government of the United States of America
and the Government of Greece made on July 8, 1947, and any further
sums which may, from time.to time, be required by mach Agreement to be
deposited in guch account. Jt is understood that subsection (e) of
Section 114 of the Economic Cooperation Act of 1948 constitutes the
approval and determination of the Governnent of the United States of
America with respect to the disposition of such balance, referred to
in that Agreement.

(b) The unencumbered balances of the deposits made by the
Government of Greece. pursuant to the exchange of notes between the
two Governments completed May 12, 1948.

(c) amounts commensurate with the indicated dollar cost to the

Government of the United States of America of commodities, services



-15-

further deposit shali be made in such accounts. Thereafter
the drachmae proceeds which are derived from the dollara made
available to the Government of Greece by the American Mission
for Aid to Greece by deposit in the “Bank of Greece, Special
Account—AHAG" and which would otherwise have been required
to be deposited to these two accounts shall be deposited
inmediately by. the Government of Greece directly into the
Drachma Reconstruction and Agricultural Rehabilitation Fund
account.

9. The Government of Greece may draw upon the Drachma
Reconstruction and Agricultural Rehabilitation Fund account
for payment of obligations established by written agreements
heretofore made between the Government of Greece and the
Anerican Mission for Aid to Greece representing the Govern-
ment of the United States of America, provided that such
withdrawals have the written approval of the Government of the
United States of America. .

10. The Government of Greece may draw upon the Drachma Re-
construction and Agricultural Rehabilitation Fund account for such
further purposes as may be agreed upon from time to time with the
Governnent of the United States of America. In considering pro-
posals put forward by the Government of Greece for drawing from

the Fund, the Government of the United States of America will take



-n-

complete any imports into Greece. The Government of Greece may

at any time make advance deposits in the Special Account which shall
be credited against subsequent notifications pursuant to this
paragraph.

3. The Government of the United States of America will
from time to time notify the Government of Greece of its re-
quirenents for administrative expenfitures in drachmae within
Greece incident to operations under the Economic Cooperation
Act of 1948, and the Government of Greece will thereupon make
such sams available out of any balances in the Special Account
in the manner requested by the Government of the United States
of America in the notification,

4. Five percent. of each deposit made pursuant to this
Article in respect of assistance furnished under authority of
the Foreign Aid Appropriation Act, 1949, shall de allocated
to the use of the Government of the United States of America
for its expenditures in Greece, and sums made available
pursuant to paragraph 3 of this Article shall first be charged
to the amounts allocated under this peragraph.

5. The Government of Greece will further make euch suns
of drachmae available out of any balances in the Special Account
as may be required to cover coste (including port, storage,
handling and similar charges) of transportation from any point
of entry in Greece to the consignee's designated point of
delivery in Greece of such relief supplies and packages as



-24-

Article IX

(Nissions)

1, ‘The Government of Greece agrees to receive a Special Mission
for Economie Cooperation which will discharge the responsibilities of
the Government of the United States of america in Greece under this
Agreement, end may diecharge such of the responsibilities of a non-
military character of the Government of the United States of America
in Greece under the Agreement of June 20, 1947, as may be decided by
the Government of the United States of America, In the discharge of
such responsibilities under the Agreement of June 20, 1947, such Special
Miseion shall be regarded as the equivalent of the American Mission for
Ald to Greece, insofar as activities in connection with the furnishing
of non-military assistance are concerned, for the purposes of the said
Agreement of June 20, 1947, and for the purposes of presently existing
private contracts and presently existing agreements, contracts and
legislative and executive action of the Government of Greece pursuant
to the said Agreement of June 20, 1947,

2, Responsibilities in Greece of the Government of the United
States of America under the Agreement of June 20, 1947 which are not
by decision of the Government of the United States of America aesumed
for discharge by the Special Mission for Economie Cooperation will
continue to be discharged by the American Mission for Aid to Greece.

3, ‘The Government of Greece agrees to consider the Special Mission
and its personnel, and the United States Special Representative in
Burope, as a part of the American Mission for Aid to Greece for the

purpose of enjoying the privileges and immunities accorded to the



(v)

(e)

of Greece and which are situated within the
United States of america, its territories or
possessions, MNothing in this clause inposes
any obligation on the Government of the United
States of America to assist in carrying out such
measures or on the Government of Greece to dis-
pose of such asseta;

to promote the development of industrial and agri~

cultural production on a sound economic basis; to

achieve such production targets ae say be established

‘through the Organization for Furopeen Economic Co-

operation; and when desired by the Government of the
United States of America, to communicate to that
Government detailed proposals for specific projects
contemplated by the Government of Greece to be under-
taken in substantial part with assistance made avail-
able pursuant to this Agreement, including whenever
practicable projects for increased production of food,
coal and steel;

to atabilise its currency, eetablich or maintain «
valid rate of exchange, balance ite governnental
budget as soon as practicable, create cr nain-

tain internal financial stability, and generally


TIAS 2568 4

actions of United States nationals which are comparable to the
transactions covered by such guaranties, and that such drachma
amounts will be freely available to the Government of the United
States of America for administrative expenditures;

c. That any claim against the Government of Greece, to which the
Government of the United States of America may be subrogated
as the result of any payment under such a guaranty, shall be the
subject of direct negotiations between the two Governments. If,
within a reasonable period, they are unable to settle the claim by
agreement, it shall be referred for final and binding determina-
tion to a sole arbitrator selected by mutual agreement. If the
Governments are unable, within a period of three months, to
agree upon such selection, the arbitrator shall be one who may be
designated by the President of the International Court of Justice
at the request of either Government.

“Jf this proposal is acceptable to the Government of Greece it is
suggested that you reply by note. This note, together with such
reply, will constitute an agreement between our two Governments
on this subject, the agreement to enter into force on the date of re-
esipt of your reply note.”

Thave the honor to confirm to you that the provisions set forth in the
said note are acceptable to the Government of Greece and that it is
agreed that your note and this reply constitute an agreement between
our two Governments on this subject, the agreement to enter into force
on the date of receipt of this note.

‘Accept, sir, the assurances of my highest consideration.

The Ambassador of Greece:
A. G. Powrris

The Honorable
Henry A. Brroave
Assistant Secretary of State
for Near Eastern, South Asian and African Affairs,
Department of State,
Washington, D.C.

os, GOvEANWENT PRINTING OFFICES 1908



-a-

Article VII

(Consultation and Transmittal of Information)

1. The two Governsents will, upon the request of either

of them, consult regarding any matter relating to the applica-

tion of this Agreement or to operations or arrangements carried

out pursuant to this Agreement,

2.

The Government of Greece will commmicate to the

Government of the United States of America in a formand at

intervals to be indicated by the latter after consultation

with the Government of Greece:

(a)

(b)

(c)

detailed information of projects, programs and
measures proposed or adopted by the Government

of Greece to carry out the provisions of this
Agreement and the General Obligations of the
Convention for European Economic Cooperation;

full statements of operations under this Agreement,
including a statement of the use of funds, commodi-
ties and services received thereunder, such state-
ments to be made in each calendar quarter;
information regarding its economy and any other
relevant information, necessary to supplement

that obtained by the Government of the United States
of America from the Organization for Kuropean

Economic Cooperation, which the


-16-

Greece will, when so requested by the Government of the United.
Stetes of America, negotiate where applicable (a) a future
schedule of minimum availabilities to the United States of
America for future purchase and delivery of a fair share of
materiale originating in Greece which are required by the United
States of America as a result of deficiencies or potential de-
ficlencies in ite own resources at world market prices so as
to protect the access of United States industry to an equitable
share of such materiale either in percentages of production or
in absolute quantities from Greece, (>) arrange~
ments providing suitable protection for the right of access for
any citizen of the United States of America or any corporation,
partnership, or other association created under the laws of
, the United States of America or of any State or Territory
thereof and substantially beneficially owned by. citizens of
the United States of America, in the development of such
materials on terms of treatment equivalent to those afforded
to the netionals of Greece, and, (c) an agreed echedule of
increased production of such materials where practicable in
Greece and for delivery of an agreed percentage of such in- .
creased production to be transferred €0 the United States of
America on a long-term basis in consideration of aesistance
furnished by the United States of America under this Agree-

ment,



The Secretary of State to the Greek Ambassador

DepaRTMENT or STaTE
Wasuinoton
April 21 1952

EXCELLENCY :

I have the honor to refer to the conversations which have recently
taken place between representatives of our two Governments relating
to Article III of the Economic Cooperation Agreement between the
United States of America and Greece, signed at Athens, on July
2, 1048,[*] as heretofore amended or supplemented.[*] As a conse-
quence of these conversations, the Government of the United States
of America proposes the following agreement to the Government of
Greece:

The Governments of Greece and of the United States of America
will, upon the request of either of them, consult respecting projects
in Greece proposed by nationals of the United States of America with
regard to which guaranties under Section 111 (b) (3) of the Eco-
nomic Cooperation Act of 1948, as heretofore amended,[*] have been
made or are under consideration. With respect to such guaranties
extending to projects which are approved by the Government of
Greece in accordance with the provisions of the aforesaid Section,
the Government of Greece agrees:

a. That if the Government of the United States of America makes
payment in United States dollars to any person under any such
guaranty, the Government of Greece will recognize the transfer
to the United States of America of any right, title or interest
of such person in assets, currency, credits, or other property on
account of which such payment was made and the subrogation
of the United States of America to any claim or cause of action
of such person arising in connection therewith. The Govern-
ment of Greece shall also recognize any transfer to the Govern-
ment of the United States of America pursuant to such guaranty
of any compensation for loss covered by such guaranties re-

‘Treaties and Other International Acts Series 1786; 62 Stat., pt. 2, p. 2298.
*TIAS 2025; 64 Stat., pt. 3, p. Bl04; and TIAS 2238; 2 UST 843,

Ret ‘62 Stat. 144; 22 U.S. C. § 1509 (b) (3).

& 28042-—63 qq)


DEPARTMENT OF STATE
PuBLication 4840

[Literal print!

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington 25, D.C. : Price 5 cents


-T-

restore er maintain confidence in its monetary
eystens; and

(4) to cooperate with other participating couatries
in facilitating and estimating an increasing inter-
ehange of goods and services among the participating
countries and with other countries end ia reducing
pebdlic and private barriere to trade among thea-
elves and with other countries.

2, Taking into account Article 8 of the Convention for
Baropesa Sconomie Cooperation leoking toward the full and effective
use of manpower available in the participating countries, the
Gevernment of Greece will accord sympathetic consideration to pro-
posale made in conjunction with the International Refugee Organiza-
tion directed to the largest practicable utilisation of manpower
available in any of the participating countries in furtherance of
the accomplishment of the purposes of this Agreenent.

3. The Government of Greece will take the measures which
it deens appropriate, and will cooperate with other participating
countries, to prevent, on the part of private or public commercial
enterprises, business practices or business arrangements affecting
international trade which restrain competition, limit access to
markets or foster monopolistic control whenever such practices or
arrangements have the effect of interfering with the achievement

of the joint program of Europesn recovery,



) 8

3 ' eras 2568

The Greek Ambassador to the Assistant Secretary of State
ROYAL GREEK EMBASSY
WASHINGTON, D. C.
No. 1703 ApRiL 23, 1952.

Sm:
T have the honor to acknowledge the receipt of your note of April

21, 1952, which reads as follows:

“J have the honor to refer to the conversations which have re-
cently taken place between representatives of our two Governments
relating to Article ITI of the Economic Cooperation Agreement be-
tween the United States of America and Greece, signed at Athens,
on July 2, 1948, as heretofore amended or supplemented. As a
consequence of these conversations, the Government of the United
States of America proposes the following agreement to the Govern-
ment of Greece:

“The Governments of Greece and of the United States of America
will, upon the request of either of them, consult respecting projects
in Greece proposed by nationals of the United States of America
with regard to which guaranties under Section 111 (b} (3) of the
Economic Cooperation Act of 1948, as heretofore amended, have
been made or are under consideration. With respect to such guar-
anties extending to projects which are approved by the Government
ot Greece in accordance with the provisions of the aforesaid Sec-
tion, the Government of Greece agrees:

a. That if the Government of the United States of America makes
payment in United States dollars to any person under any such
guaranty, the Government of Greece will recognize the transfer
to the United States of America of any right, title or interest of
such person in assets, currency, credits, or other property on ac-
count of which such payment was made and the subrogation of
the United States of America to any claim or cause of action of
such person arising in connection therewith. The Government
of Greece shall also recognize any transfer to the Government of
the United States of America pursuant to such guaranty of any
compensation for loss covered by such guaranties veceived from
any source other than the Govertinent of the United States of
America;

b. That drachma amounts acquired by the Government of the
United States of America pursuant to such guaranties shall be
accorded treatment not less favorable than that accorded, at the
time of such acquisition, to private funds arising from trans-


~13-

wnder the Economic Cooperation Act of 1948 or otherwise,
or by loans from the International Bank for Reconstruction and
Development.

7. Any unencumbered balance, other than unexpended amounts
allocated under paragraph 4 of this Article, remaining in the
Special Account on June 30, 1952, shall be disposed of within.
Greece for such purposes as may hereafter be agreed between
the Governuents of the United States of America and Greece, it
being understood that the sgreanent of the United States of
Auerica shall be subject to approval by Ast or joint resolution
of the Congress of the United States of America.

8. The Government of Greece will continues to maintain
in the Bank of Greece the account know as the “Drachre
Reconstruction and Agricultural Rehabilitation Fund" established
pursuant to the Agreement between the Government of the United
States of Anerica and the Government of Greece of June 20,
1947, and will make further deposits in drachmse to this
account as follows:

(s) Anounts commensurate with the indicated dollar
cost to the Government. of the United States of America
(ancluding any costs of processing, storing, transporting,
vepsiring, or other services incident thereto) of all imports

(other than those otherwise specified in this eub-paragreph)



TREATIES AND OTHER INTERNATIONAL ACTS SERIES 5331

INVESTMENT GUARANTIES

Agreement Between the
Unirep Srares or AMERICA
and GREECE

Relating to the Agreements of
July 2, 1948, as Amended, and
April 21 and 23, 1952

r ) Effected by Exchange of Notes
Signed at Athens April 19, 1963



ECOROKIC COOPERATION AGREEMENT

BETWEEN

THE UNITED STATES OF AMERICA AND GHEECE

Preamble
article I
article IT
‘beticle rr
article IV
article ¥

Avticle VI
article VIZ

Article VIII
Article IX
article X
Article XI

Article XII
Article XIIZ

Annex

Bable of Contents

Assistance and Cooperation
General Undertekings
Guaranties

Lecel Currency

Access to Materials

Travel Arrangements and
Relief Supplies

Consultation and Transmittal
of Information

Publicity

Missions

Settlement of Claims of Nationale
Definitions

Relation to Agreement of
Jane 20, 1947

Entry into Force, Aucndment,
Duration .

Intervretative Notes

Page

oo Hn 88

7

23

24


ECONOMIC
COOPERATION
AGREEMENT

Between

The UNITED STATES of AMERICA

and

GREECE

_ DEPARTMENT OF STATE


-32-

DONE at Athens, in duplicate, in the English and Greek

languages, both texts authentic, thie second day of July, 1948,

For the Government of the United States of America:

K, L, Ratkin_
Chargé d'Affaires ad Interim

Government of Greece:

Constantine Tealdaris
Deputy Prime Minister and Minister
for Foreign Affairs



-2-

Article VI

(Travel Arrangements and Relief Supplies)

1. The Government of Greece will cooperate with the
Government of the United States of America in facilitating
and encouraging the promotion and development of travel by
citizens of the United States. of America to and within
participating countries.

2. The Government of Greece will, when so desired by
the Government of the United States of America, enter into
negotistions for agreements (Ancluding the provision of
duty-free treatment under appropriate safeguards) to facili-
tate the entry into Greece of supplies of relief goods
donated to or purchased by United States voluntary non-profit
relief agencies and of relief packages originating in the
United States of America and consigned to individuals residing

in Greece,



-19-

3. The Government of Greece, when 80 requested
by the Government of the United States of America, will
cooperate, wherever appropriate, to further the objectives
paragraphs 1 and 2 of this Article in respect of materials

originating outside of Greece.

of



TIAS 2568 2

ceived from any source other than the Government of the United
States of America;

b. That drachma amounts acquired by the Government of the
United States of America pursuant to such guaranties shall
be accorded treatment not less favorable than that accorde,
at the time of such acquisition, to private funds arising from
transactions of United States nationals which are comparable to
the transactions covered by such guaranties, and that such
drachma amounts will be freely available to the Government
of the United States of America for administrative expenditures;

c. That any claim against the Government of Greece, to which
the Government of the United States of -\merica may be sub-
rogated as the result of any payment under such a guaranty,
shall be the subject of clirect negotiations between the two Gov-
ernments. If, within a reasonable period, they are unable to
settle the claim by agreement. it shall be referred for final and
binding determination to a sole arbitrator selected by mutual
agreement. If the Governments are unable, within a period of
three months, to agree upon such selection, the arbitrator shall
be one who may be designated by the Presideut of the Inter-
national Court of Justice at the reque~t of either Government.

If this proposal is acceptable to the Government of Greece it is

suggested that you reply by note. This note, together with such reply,
will constitute an agreement between our two Governments on this
subject, the agreement to enter into force on the date of receipt of
your reply note.[*]

Accept, Excellency, the renewed assurances of my highest con-

sideration.

For the Secretary of State:
Henry A. Byroape

His Excellency

Armanase G. Potrtts,
Ambassador of Greece.

+ Apr. 29, 1952.


-10~

and technical information (including any costs of processing, storing,
transporting, repairing or other services incident thereto) made
available to Greece on a grant basis by any means authorised under
the Economic Cooperation Act of 1948, less, however, the amount of
the deposits mde porsuant to the exchange of notes referred to in
sab-paragraph (b). The Government of the United States of America
shall from tine to time notify the Government of Greece of the
indicated dollar cost of any such commodities, services and technical
inforgation, and the Government of Greece will ‘thereupon deposit in
the Special Account a commensurate amount of drachmae compated at

@ rate of exchange which shall be the par value agreed at such tine
with the International Monetary Fund, provided that this agreed value
is the single rate applicable to the purchase of dollers for imports
into Greece. If at the time of notification @ par value for the
drachma is agreed ‘with the Fund and there are one or more other
effective rates applicable to the purchase of dollars for imports
into Greece (vhether such effective rate reprasente an agreed par
value plue the current warket walue of dollar exchange certificates,
er otherwise,) or, if at the time of notification no par value for
‘the drachma ia egreed with the Fund, the rate or rates for this
particular purpose shall be mitually agreed upon between the
Government of Greece and the Government of the United States of
America. The term “effective rate" shall include, but not by way

of limitation, the market value at the time of notification of

dollar exchange certificates if such certificates are reouired to


-27 =

2. The Governuents of the United States of America and
Greece further agree that such clains may ve referred, in lieu
of the Court, to any arbitral tribunal mutually agreed upon.

3. It is further understood that neither Government will
espouse @ claim pursuant to this Article until its national
has exhausted the remedies available to him in the adninis-
trative and judicial triomals of the country in which the

clain arose.


7B

Article 2
(Definitions)

As used in this Agreement the term "participating comtry®

(4) any country which signed the Report of the Comittee
of European Economic Cooperation at Faris on
September 22, 1947, and territories for which it has
international responsibility and to which the
Economic Cooperation Agreement concluded between
that coumtry and the Government of the United States
of Amsrica has been applied, and
(ii) any other country (including any of the sones of
occupation of Germany, and areas under intemmational
administration or control, and the Free Territory
of Trieste or either of its sones) wholly or partly
in Europe, together with dependent areas under its
administration;
for so long as such comtry is a party to the Convention for European
Economic Cooperation and adheres to a joint program for European re~
covery designed to accomplish the purposea of this Agreement.



-16-

into consideration and give priority to the need for completing
and continuing programs and projecta undertaken pursuant to the
Agreement of June 20, 1947, such as for the reconstruction and re-
habilitation of highways, railroads, ports, canals, airfields,
housing, schools, reclauation, waterworks, and telecoummications;
the improvement and rehabilitation of iadustry, mining, public
health, agriculture, and the production, processing and storage of
food; and for governmental decentralization, work relief, and other
civil and military projects undertaken by the Government of Greece
with the prior approval of the Government of the United States of
America.

11, The Government of the United States of America will from
time to time notify the Government of Greece of its requirements
for administrative expenditures in drachmse incident to the operations
under the Act "To Provide for Assistance to Greece and Turkey",
Public Law 75, approved May 22, 1947, as amended, and the Government.
of Greece will thereupon make such sums available out of any balances
in the Drachma Reconstruction and Agricultural Rehabilitation Fund
account in the manner requested by the Government of the United States

of America in the notification.


3

Ihave the honor to confirm to you that the provisions set forth in the
above note are acceptable to the Government of Greece and that it is
agreed that your note and this reply constitute an agreement between
our two Governments on this subject.

Accept, Excellency, the assurances of my highest consideration.

E Averorr Tossizza

His Excellency
Heyry R. Lazovutssz
Ambassador Extraordinary
and Plenipotentiary
Embassy of the United States
of America
Athens

TIAS 5331

U5, GOVERNMENT PRINTING OFFICE :I963


j

-iti-

7e It is understood that any agreements which might be
arrived at pursuant to paragraph 2 of Article X would be subject
to ratification by the Senate of the United States of Anericas

8. It is understood that if the Governnent of Greece should
accept the compulsory jurisdiction of the Intemational Court
of dustice under Article 36 of the Statute of the Court, a
suitable terms and conditions, the two Governments will consult
with a visi to veplacing the second sentence of paragraph 1
of Article X with provisions along the following lines: “It
is understood that the mdertaking of each Government in respect
of clains espoused by the other Government pursuant to this
paragraph is made in the case of each Government under the
authority of and is limited by the terms and conditions of such
effective recognition as it has heretofore given to the compulsory
jurisdiction of the International Court of Justice under Article
36 of the Statute of the Court.


secueicimi

on a

ji

~ie
: ANNEX
dnternretative Notes.
1. It is understood that the requirements of paregraph 1 (a)
of Article Il, relating to the adoption of measures for the efficient
use of resources, would include, with respect to commodities fur
nished under the Agreement, effective measures for safeguarding such
commodities and for preventing their diversion to illegal or irregu~

_ lar narkets or channels of trado.

2. It is wnderstood that the obligation under paragraph 1 (co)
of Article II to balance the budget as soon es practicable would not
preclude deficits over a short period but would msen a budgetary
policy involving the balancing of the budget in the Jong rune

3. It is understood that the business practices and business
arrangenents referred to in paragraph 3 of Article II nean:

(a) fixing prices, terns or conditions to be observed in
dealing with others in the purchase, sale or lease of
any product;

(b) excluding eterprises fron, or allocating or dividing,
any territorial market or field of business activity, or
allocating customers, or fixing sdLes quotas or purchase
quotas; .

(c) discriminating against particular enterprises;

(a) limiting production or fixing production quotas;

(e) preventing by agreement the development or application
of technology or invention whether patented or unpatented;

(£) extending the use of rights under patents, trade marks

or copyrights granted by either cowmtry to matters which,


-3-
Article I

(Assistance and Cooperation)

1. ‘fhe Government of the United States of America under-
takes to assist Greece, by making available to the Government of
Greece or to any person, agency or organization designated by the
latter Government, such assistance as may be requested by it and
approved by the Government of the United States of America. The
Government of the United States of America will furnish this
aesistence under the provisions, and subject to all of the terns,
conditions and termination provisions, of the Economic Cooperation
Act of 1948, acte amendatory end eupplementary thereto and appro-
priation acte thereunder, and will make available to the Government
of Greece only such commodities, services and other esaistance as
are suthorized to be made available by such acts,

2, Whe Government of Greece, acting individually and through
the Organisation for European Economic Cooperation, consistently
with the Convention for European Economic Cooperation signed at
Parle on April 16, 1948, will exert austained efforts in common
with other participating countries speedily to achieve through a
joint recovery program economic conditions in garope essential to
lasting peace and prosperity and to enable the countries of Europe
participating in such a joint recovery program to become independent

of extraordinary outside economic assistance within the period of

” thie Agreement, The Government of Greece reaffirms its intention

to take action to carry out the provisions of the General Obligations

of the Convention for European Economic Cooperation, to continue to


-5-

Article IT
(General Undertakings )

1. %In order to achieve the maximum recovery through the

employment of assistance received from the Government of the

United States of America, the Govermment of Greece will use its

dest endeavors:

(a) to adopt or maintain the measures necessary $o ensure

efficient and practical use cf all the resources avail~-

able to it, including

(4)

(44)

(441)

such measures as may be necessary to ensure that
the commodities and service obtained with assist-—
ance furnished under this Agreement are used for
purposes consistent with this Agreement and, as
far as practicable, with the general purposes out-
lined in the schedules furnished by the Government
of Greece in support of the requirements of as~
sistance to be furnished by the Government of the
United States of America;

the observation and review of the ure of such re~
sources through an effective follow-up systen
approved by the Orgentzation for European Keononic
Cooperation; and

to the extent practicable, measures to locate,
identify and pat into appropriate use in furtherance
of the joint program for Buropean recovery, assets,

and earnings therefrom, which belong to nationals



2

of America will consider that this note and your reply thereto con-
stitute an Agreement between our two Governments on this subject.

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

Henry R. Lazouisse

His Excellency
EvancHeLos Averorr-Tossizza,
Minister for Foreign Affairs,
Athens.

The Greek Minister for Foreign Affairs to the American Ambassador

MINISTERE ROYAL
DES AFFAIRES ETRANGERES

No. F1063H-9 Aruens, 19th April, 1963

EXCELLENCY,
T have the honor to acknowledge receipt of your note of to-day,
which reads as follows:

“I have the honor to refer to Article III of the Economic Coopera-
tion Agreement of July 2, 1948, as amended, between our two Govern-
ments and the agreement effected by the exchange of notes of April 21
and April 23, 1952, relating to investment guaranties which may be
issued by the Government of the United States of America for invest-
ments in activities ‘in Greece. After the conclusion of these agree-
ments, legislation has been enacted in the United States of America
modifying and augmenting the coverage to be provided investors by
investment guaranties that may be issued by the Government of the
United States of America.

In the interest of facilitating and increasing the participation of
private enterprise in furthering the economic development of Greece,
the Government of the United States of America is prepared to issue
investment guaranties providing such coverage as may be authorized
by the applicable United States legislation for appropriate invest-
ments in activities approved by your Government provided that your
Government agrees that the undertakings between our respective Gov-
ernments contained in the above-mentioned agreements will be ap-
plicable to such guaranties.

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Royal Hellenic Government and that
such undertakings shall apply, the Government of the United States
of America will consider that this note and your reply thereto consti-
tute an Agreement between our two Governments on this subject.”

TIAS 5331


-2%-+

Article X
(Settienent of Claims of Nationals)

1s ‘The Governnents of the United States of America and
Greece agree to submit to the decision of the International Court
of Justice any claim espoused by either Governmant on behalf of one
of its nationals against the other Government for compensation
for damage arising as a consequence of governnental measures (other
than measures concerning eneny property or interests). taken after
April 3, 1948, by the other Government and affecting property or
interests of such national, including contracts with or concessions
granted by duly authorized authorities of such other Government.
Zt is understood that the undertaking of the Government of the
United States of America in respect of clains espoused by the
Government of Greece pursuant to this Article is made under the
authority of and is limited by the terms and conditions of the
recognition by the United States of America of the compulsory
jurisdiction of the Intemational Court of Justice under Article
36 of the Statute of the Court, as set forth in the Declaration
of the President of the United States of Anerica dated August
14, 1946. The provisions of this paragraph shall be in all
respects without prejudice to other rights of access, if any, of
either Goveranent to the International Court of Justice or to the
espousal and presentation of claims based upon alleged violations
by either Governnent of rights and duties arising under treaties,

agreonents or principles of international law.



-1l4-

procured directly by the Government of the United States

ef America pursuant to the said Agreement of June 20, 1947

and delivered to the Government of Greece, lees, hovever,
ancunts heretofore deposited in the aforesaid account pursuant
to the said Agreement. ‘The snount of drachmae to be deposited
shell be computed at a rate of exchanges in accordance with

the provisions of Section 2(c) of this Article. fhe Government
of the United States of America shall from time to time notify the
Government of Greece of the indicated dollar cost of imports

eo delivered sani the Government of Greece will thereupon
@eposit in the Drachma Reconstruction end Agricultural
Rehabilitation Pund account s commensurate amount of drachme
computed as provided above. Drachmae will not be deposited

to the Drachma Reconstruction an@ Agricultural Rehabilitation
Fand account for imports which the two Governments have agreed
or may agree shall be made available to the Government of Greece
without the deposit of drachme.

(>) The unencumbered balances at the close of business on the
day of the signature of this Agreement in the accounts of the Govern-
ment of Greece in the Bank of Greece known as the “Proceeds of
Sales at the Disposal of ANAG” and “Proceeds of Issue and Sale

by Bank of Exchange Certificates Againet AKAG Tantis", and no


GREECE

Investment Guaranties

Agreement relating to the agreements of July 2, 1948, as amended,
and April 21 and 23, 1952.

Effected by exchange of notes _

Signed at Athens April 19, 1963;

Entered into force April 19, 1963.

The American Ambassador to the Greek Minister for Foreign Affairs
wo. 278 Avan, 19, 1963

EEXCELLENCY : : -

LT have the honor to refer to Article III of the Economic Cooperation
Agreement of July 2, 1948,[*] as amended, between our two Govern-
ments and the agreement effected by the exchange of notes of April 21
and April 23, 1952,(*] relating to investment guaranties which may
be issued by the Government of the United States of America for in-
vestments in activities in Greece. After the conclusion of these agree-
ments, legislation has been enacted in the United States of America
modifying and augmenting the coverage to be provided investors by
investment guaranties that may be issued by the Government of the
United States of America. : 4

In the interest of facilitating and increasing the ‘participation of
private enterprise in furthering the economic development of Greece,
the Government of the United States of America is prepared to issue
investment guaranties providing such coverage as may be authorized
by the applicable United States legislation for appropriate investments
in activities approved by your Government provided that your Govern-
ment agrees that the undertakings between our respective Governments
contained in the above-mentioned agreements will be applicable to such
guaranties. :

Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Royal Hellenic Government and that
such undertakings shall apply, the Government of the United States

* PIAS ; 62 Stat. 2310.
9 TIAS 2568 ; 3 UST 4250.
98622—63 qa) -TIAS 5331


\

Government of the United States of America may need to
determine the nature and scope of operations

under the Economic Cooperation Act of 1948, and

to evaluate the effectiveness of assistance

furnished or contemplated under thie Agreement

and generally the progress of the joint recovery
program,

3. The Governnent of Greece will assist the Government
of the United States of America to obtain information relating
to the materials originating in Greece referred to in Article V
which is necessary to the formulation and execution of the

arrangenents provided for in that article.



-31-

(bv) after such shorter period as my be agreed to be
sufficient to ensure that the obligations of the
Government of Greece are performed in respect of
any assistance which may continue to be furnished
by the Goverriment of the United States of America
after the date of such notices
provided however, that Article V and paragraph 3 of article VII
shall remain in effect mtil two years after the date of such notice
of intention to terminate, but not later than Jme 30, 19536
"3, Subsidiary agreements and arrangements negotiated pursuant
to this Agreeuent may remain in force beyond the date of termination
of this Agreement and the period of effectiveness of such subsidiary
agreenents and arrangenents shall be governed by their own termae
Article IV shall resain in effect util ell the sums in the currency
of Greece required to be deposited in accordance with its om terms
have been disposed of as provided in that Article. Paragraph 2 of
article III shall remain in effect for so long as the guaranty pay-
nants referred to in that Article may be made by the Governnent of
the United States of Americas
de This Agreenent nay be amended at any time by agreenmt be-
tween the two Governnents.
5. ‘The Annex to this Agreenent forms an integral part thereof.
6. This Agreenent shall be registered with the Secretary-
General of the United Nations. :
IN WITNESS WHERZOF the respective representatives, duly authorised

for the purpose, have signed the present Agreemente

|
i



(Access to Materials)

1. The Government of Greece will facilitate the
transfer to the United States of America, for stockpiling or

other purposes, of materials originating in Greece which ere

required by the United States of America as a result of deficiences

or potential deficiencies in its om resources, upon such reason-
able terms of sale, exchange, barter or otherwise, and in such
quantities, and for such period of time, as may be agreed to
between the Governments of the United States of America and
Greece, after due regard for the reasonable requirements of
Greece for domestic use and commercial export of such materials.
The Government of Greece will take such specific measures as
may be necessary to carry out the provisions of this para-
graph, including the promotion of the increased production
of such materials within Greece, and the removal of any
hindrances to the transfer of such materiale to the United
States of America. The Government of Greece will, when so
requested by the Government of the United States of America,
enter into negotiations for detailed arrangements necessary
to carry out the provisions of this paragraph.

2. Recognizing the principle of equity in respect to
the drain upon the natural resources, of the United States of

America and of the participating countries, the Government of



spe een , fe cote a a ES

Preamble

-1-

The Governments of the United States of America and Greece:
Recognizing that the restoration or maintenance in European
countries of principles of individual liberty, free institutions,
and genuine independence Tests largely Npon the establishment of
sound econoate conditions, (Stable international economic relation-
ships, and the echievement by the countries of Enrope of a healthy
economy independent of extraordinary outside assistance;
Recognizing that a strong and prosperous European economy is
essential for the attainment of the Porposes of the United Nations;
Considering that the ‘achtevement of such conditions calls for
a Turopean recovery plan of self-help and mutual cooperation, open
to all Rations which cooperate in such a plan, based upon a strong
production effort, the expansion of foreign trade, the creation or
maintenance of internal financial stability and the development of
economic cooperation, including all possible steps to establish and
maintain yalid rates of exchange and to reduce trade barriers;
Considering that in furtherance of these principles the Govern-

ment of Greece has Joined with other (Mike-minded nations ina

“Convention for Faropean Reononic Cooperation signed at Paris on

April 16, 1948 under which the signatories of thst Convention agreed
to undertake as their immediate task the elaboration and execution
of a joint recovery program, and that the Government of Greece is

a member of the Organization for European Economic Cooperetion

created pursuant to the provisions of that Convention;



participate actively in the work of the Organizetion for
Buropean Economie Cooperation, end to continue to adhere to the
purposes and policies of the Economic Cooperation Act of 1948,

3, With reepect to assistance furnished by the Government
of the United States of America to Greece and procured from areas
outside the United States of America, its territories and pos-
sessions, the Goverment of Greece will cooperate with the Govern-
ment of the United States of America in ensuring that procurement
will be effected at reasonable prices and on reasonable terms and
ao as to arrange that the dollars thereby made available to the

. country from which the assistance is procured are used in a manner
consistent with any arrangements made by the Government of the

United States of America with such country.