EREATIES AND OTHER INTERNATIONAL ACTS SERIES A201-

GUARANTY OF PRIVATE INVESTMENTS

i

i . Agreement Between the. “s
Unirep States or AMERICA
and the Supan

i 4

i a Effected by Exchange of Notes
Signed at Khartoum March 17, 1959

@

Conve R! Sbidade ey |

Dime Cal 6G wf



4

2, The Government of the United States of America agrees that
ib will issue no guaranty with regard lo any project unless it is
approved by the Government of the of the Republic of the Sudan.
3, With respect to such guaranties extending to projects which
are approved by the Government of the Republic of the Sudan
in accordance with the provisions of the aforesaid Section 418 (b)
(4), the Governmont of the Republic of the Sudan agrees:

a) That if the Government of the United States of America
makes payment in United States dollars to any person under
any such guarnty, the Government of the ‘Republic of the Sudan ;
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, or right of such person arising in
connection therewith. j

b) That Sudanese pound amounts acquired by the Government ‘
of the United States of America pursuant to such guaranties

shall be accorded treatment not less favourable than that ac- }
corded to private funds arising from transactions of United
States nationals which are comparable to the transactions cov-
ered by such guaranties, and such Sudanese pound amounts will
be freely available to the Government of the United States of
America for administrative expenditure, . 1

ce) That if the Government of the United States of America
issues guaranties to cover losses by reason of war with respect to i
investments in the Republic of the. Sudan the Government of the

Republic of the Sudan agrees that nationals of the United States

of America to whom such guaranties have been issued, will be

accorded by the Government of the Republic of the Sudan treat-

ment not Jess favourable than that accorded, in like cireumstances,

to its nationals or nationals of third countries, with reference to

any reimbursement, compensation, idemnification, or any other

payment, including the distribution of reparations received from

enemy countries, that the Government of the Republic of the

Sudan may make or pay for losses incurred by reason of war;

if the Government of the United States of Amovica makes pay- :
ment in United States dollars to any national of the United i
States of America under a guaranty for losses by reason of war,
the Government of the Republic of the Sudan will recognize
tho transfer to the United States of America of any right,
privilege, or interest, or any part (hereof, that such, nationals
may bo granted or become entitled to as a result of the afore-
mentioned treatment by the Government of the Republic of the
Sudan. :

WAS 4201



SUDAN

Guaranty of Private Investments

Agreement effected by exchange of notes
Signed at Khartoum March 17, 1959;
Entered into force March 17, 1959.

The American Ambassador to the Sudanese Minister of Foreign
Affairs

EMBassy or THE
Untrep Sraves or Axmrtoa
Note No, 207 Khartoum, March 17, 1959.

Excrunnncy:

T have the honor to refer to conversations which have recently taken
.place between representatives of our two Governments, relating to
guaranties authorized by Section 413(b) (4) of the Mutual Security
Act of 1954, [*] as amended. I also have the honor to confirm the
following understandings reached as a result of these conversations:

1, The Governments of the Republic of the Sudan and the United
States of America will, upon the request of either of them, consult
respecting projects in the Republic of thé Sudan proposed by na-
tionals of the United States of America with regard'to which guar-
anties under Section 413(b) (4) of the Mutual Security Act of 1954,
as amended, have been made or are under consideration.

2. ‘Fhe Government of the United States of America agrees that
it will issue no guaranty with regard to any project unless it is ap-
proved by the Government of the Republic of the Sudan.

3, With respect to such guaranties extending to projects which are
approved by the Government of the Republic of the Sudan in ac-
cordance with the provisions, of the aforesaid Section 413(b) (4), the
Government of the Republic of the Sudan 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 the Republic of the Sudan will
recognize the transfer to the United States of America of any
right, title or interest of such person in as ols, currency, credits,
or other property on account of which such payment was made
and tho subrogation of the United States of America to any

*68 Stat. 8475 22 U.S.C. § 1933 (b) (4).
B0351—69. : (1) TIAS 4201



DEPARTMENT OF STATE

[Literal print]

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



3

Upon receipt of a note from Your Execllency indicating that the
foregoing provisions are acceptable to the Governnwnt of the Re-
public of (he Sudan, the Government of the United States of America
will consider Unat his note and your reply thereto coustitute an agree-
ment between the two Governments on this subject, the agreement to
enter into force on the date of your note in reply,

Accept, Excellency, the renewed assurances of my highest consid-
eration,

For the Ambassador:

Wiuuas E. Coz, Jr.
Counselor of Embassy

His Excellency
Sayed Aumup Kuen,
Minister of Foreign Affairs,
Khartoum.

Lhe Sudanese Minister of Foreign Affairs to the Counselor of the
American Embassy

THE REPUBLIC OF THE SUDAN

eleg, Address : Minisrry or Forrren Arrarrs
(KHARIJIA) KHARTOUM P. O. Box 878,
Kuarroum,
Supan.
Ref, No./MIPA/SCR/12. A.1. Khartoum March L7th. 1989.
Str,

I have the honour to acknowledge the receipt of your Note No.
297 dated March 17th. 1959, which reads as follows :—

“I have the honour to refer to conversations which have recently
taken place between representatives of our two Governments, re-
lating to guaranties authorized by Section 413 (b) (4) of the
Mutual Security Act of 1954, as amended. I also have the honour
to confirm the following understandings reached as a result of
those conversations:

1. Tho Governments of the Republic of the Sudan and the
United States of Ameries will, upon the request of either of
them, consult respecting projects in the Republic of the Sudan
proposed by nationals of the United States of America with
regard to which guaranties under Section 413 (b) (4) of the
Mutual Security Act of 1954, as amended, have been made or
are under consideration,

TIAS 4201



FREATENS AND OTHER INTERNATIONAL ACES SERTUS 5544

INVESTMENT CUARANTIES

Agreement Between the
Unirep Srares or AMERICA
sO and SupaN

Relating to the Agreement of
March 17, 1959

Effected hy Exchange of Notes
Signed at Khartoum March 2, 1964



5 i

d) ‘Ebat ony claim against the Government of the Republic of
the Sudan to which the Government of the United States of
America may bo subrogated as a result. of any payment under
such a guaranty, shall be the subject of direct negotiations be-
tween 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 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 arbi-
trator shall be one who may be designated by the President of }
the International Court of Justice at the request of either Gov-
ernment. This sub-paragraph (d) shall not be applicable to
the type of guaranties provided for in sub-paragraph (c), im-
mediately above.

Upon receipt of a note from Your Excellency indicating that
the foregoing provisions are acceptable to the Government of the
Republic of the Sudan, the Government of the United States of |
America will consider that this note and your reply thereto con-
stitute an agreement between the two Governments on this subject,
the agreement to enter into force on the date of your note in reply”.

I confirm that the Government of the Republic of the Sudan con-
siders your note and this reply as constituting an agreement between
our two Governments which shall enter into force on the date of this
yeply.

Accept, Sir, the assurances of my highest consideration,

Aumep Kuatr

“Ahmed Khair,
Minister of Foveign Affatrs.

Woa.arast BE, Conn, Esq.,
Counselor of Embassy, .
Embassy of the United States of America,
Khartoum
(Sudan). |

TIAS 4201

W's, QOVERHHEAY PRITING OFFICES 1980



2

claim or canse of action, or right of such person arising in con- too
nection therewith, . 7

. That Sudanese powid 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
to private funds arising from transactions of United States na-
tionals which are comparable to the transactions covered by
such guaranties, and that such Sudanese pound amounts will be
freely available to the Government of the United States of
America for administrative expenditures,

ce. That if the Government of the United States of America issues
guaranties to cover losses by reason of war with respect to invest-
ments in the Republic of the Sudan the Government of the
Republic of the Sudan agrees that nationals of the United
States of America to whom such guaranties have been issued,
will be accorded by the Government of the Republic of the
Sudan treatment no less favorable than that accorded, in like
circumstances, to its nationals or nationals of third countries,
with reference to any reimbursement, compensation, idemni-
fication, or any other payment, including the distribution of
reparations received from enemy countries, that the Government
of the Republic of the Sudan may make or pay for losses in- .
curred by reason of war; if the Government of the United \
States of America makes payment in United States dollars to '
any national of the United States of America under a guaranty
for losses by reason of war, the Government of the Republic of
the Sudan will recognizo the transfer to the United States of
America of any right, privilege, or interest, or any part thereof,
that such nationals may be granted or become entitled to as a
result of the aforementioned treatment by the Government of
the Republic of the Sudan.

d. That any claim against the Government of the Republic of the
Sudan to which the Government of the United States of America
may be subrogated as a resnlt 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 wn-
able to settle the claim by agreement, it shall be referred for
final and binding determination to a sole arbitrator selected by
mutual agreement." Tf the Governments are unable, within a
period of three months, to agree upon such selection, the arbitra-
tor shall be one who may be designated by the President of the 4
International Court of Justice at the request of either Govern-
ment. This sub-paragraph (d) shall not be applicable to the
type of guaranties provided for in sub-paragraph (ce), immedi- :
ately above. |

TIAS 4201



8
notes of March 17, 1959 will be applicable to stich guaranties including,
but not limited to, thoso issued under the Foreign Assistance Act of
1961, as amended.

Tn connection with application of the undertakings contained in the
abovementioned Agreement to all investment guaranties issued by the
Government of the United States of America, I also have the honour
‘to propose that subparagraph (c) and the final sentence of subpara-
graph (d) of Paragraph (8) of the abovementioned Agreement be
considered as no longer in effect. :

Upon receipt of a note from Your Hxcellency indicating that the
foregoing is acceptable to the Government of the Republic of the
Sudan and that such undertakings shall apply, 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, the Agreement to enter into force on the date of your note
jn. reply.”

L confirm that the Government of the Republic of the Sudan con-
sider your note and this reply as constituting an Agreement between
our to Governments which shall enter into force on the date of this
reply.

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

. Aumep Kurarr

_ Ahmed Khair,
Minister,
Ministry of Foreign Affairs.
. : - [sean]
To ELE. Wirriam M, Rountree
‘Ambassador to the United States of America
Khartoum

Done this day the 2nd, of March, 1964
Khartown.

TIAS G5S4

1.6, GOVERNMENT PRINTING OPFICREI#SS



2
Tn connection with application of the undert akings contained in the
above-mentioned Agreement to all investment guaranties issued by the
Government of the United States of Amorica, I also have the honor
_ to propose that Subparagraph (c) and tho final sentence of Subpara-
graph (d) of Paragraph (3) of the above-mentioned Agreement be
considered as no longer in effect.
Upon receipt of a note from Your Excellency indicating that the
foregoing is acceptable to the Government of the Republic of
.the Sudin and that such, undertakings shall apply, the Government of
the United States of Amorica will consider that this note and your
reply thereto constitute an Agreement between our two Governments
‘on this subject, the Agreement to enter into force on the date of your
note in reply. . . ve
Accept, Excellency, the renewed assurances of my highest
consideration.

Winans M. Rouniren
His Excellency
Asamy Moussa Kiem,
Minister for Foreign Affairs,
‘Khartown.

eS Phe Sudanese Minister for Foreign Affairs to the American
Ambassador

Exomaaner: .
Thave the honour to acknowledge receipt of your note No. 108 dated -
March. 2nd., 1964; which reads as follows'— :

“Lhave the honour to refer to the Agreement effected by the ex-
change of notes of March 17, 1959 between our two Governments
relating to investment guaranties which inay be issued by the Govern-
nient of the United States of Amorica for American investments in
activities in the Sudan, After the conclusion of that Agreement,
legislation has been enacted in the United States of America modifying
and augmenting the coverage to be provided investors by investinent
guaranties that may be issued by the Government of the United States
of. America.

In the interest of facilitating and inereasing the participation of
private enterprise in furthering the economic development of the
Sudan, 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 Government agrees that the undertakings between our respective

. Govermnents contained in the Agreement cflected by the exchange of

TLAS G54d



}
j
{
[

SUDAN

1," Investment Guaranties

jot :
Agreement relating to the agreement o. f March 17, 1959,
Effected by exchange of notes

Signed at Khartoum March 2, 1964;

Entered into force March 2, 1964.

Lhe American Ambassador to the Sudanese Minister for Foreign
: Affairs :

Expassy or rae
. Unirep Staves or Aarerica
No. 108 . Khartoum, March ®, 1964.

Exounaney : . .

T have the honor to refer to the Agreement effected by the exchange
of notes of March 17, 1959,[7] between our two Governments relating
to investment guaranties which may be issued by the Government of
tho United States of America for American investments in activities in
the Sudan, After the conclusion of that Agreement, legislation has
beén enacted in the United States of America modifying and augment-
ing 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 the
Sudan, 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 Government agrees that the'undertakings between our respective
Governments contained in the Agreement effected by the exchange of
notes of March 17, 1959, will be applicable to such guaranties includ-
ing, but not limited to, those issued under the Foreign Assistance Act
of 1961,[?) as amended. :

“PIAS 4201; 10 UST 408,
°76 Stat. 429; 22 U.S.C, § 2181 et seq.

81-58-04 , (4) . TAS 6544