3

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 aecordance
with paragraph (a) above. The arbitral tribunal shall base its decision
exclusively on the applicable principles and rules of public interna-
tional 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 de-
nunciation of the Agreement.

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

In wirness whereof the respective representatives, duly authorized
for the purpese, have signed the present Agreement.

Done at Mbabane, Swaziland, in duplicate, this twenty ninth day of
September 1967.

FOR THE GOVERNMENT OF THE
UNITED STATES OF AMBRICA

Curis © Pappas, JR.

Chris C. Pappas, Jr.
Consul of the United States of America

FOR THE GUVERNMENT OF THE
KINGDOM OF SWAZILAND

L. Lover.

Leo Lovell
Minister for Finance, Commerce and Industry

TIAS 6350

U.S. GOVERNMENT PRINTING OFFICE: 1967


TREATIES AND OTHER INTERNATIONAL ACTS SERIES 6350

INVESTMENT GUARANTIES

Agreement Between the
Unitep SraTEs OF AMERICA
and SwaZILAND

Signed at Mbabane
September 29, 1967



SWAZILAND

Investment Guaranties

Agreement signed at Mbabane September 29, 1967;
Entered into force September 29, 1967.

The Government of the United States of America (the “Gua
ing Government”) and the Government of the Kingdom of Swaziland
(the “Host Government”) with the authority of Her Majesty’s Gov-
ernment in the United Kingdom:

Seeking to encourage private investments in projects which will
contribute to the development of the Kingdom of Swaziland’s economic
resources and productive capacities through investment guaranties
issued by the Guaranteeing Government,

Have agreed as follows:

1. When nationals of the Guaranteeing Government propose to
invest with the assistance of guaranties issued pursuant to this Agree-
ment in a project or activity within the territorial jurisdiction of the
Host Government, the two Governments shall, upon the request of
either, consult respecting the nature of the project or activity and its
contribution to economic and social development in the Kingdom
of Swaziland.

2. The procedures set forth in this Agreement shal] apply only with
respect to guaranteed investinents in projects or activities approved by
the Host Government.

5. If the 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 (tovernment 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, titie, 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 inter-

$5-471—67 a TIAS 6350


2

ests under the laws of the Host Government. The Guaranteeing Gov-
ernment shall assert no greater rights than those of the t transferring
investor under the laws of the Host Government with respect to any
interests transferred or succeeded to as contemplated in paragraph 3.
The Guaranteeing Government. does, however, reserve its rights to
assert a claim in i reign capacity in the eventuality of a denial
of justice or other question of state responsibility as defined in inter-
national law.

Amounts in the lawful enrrency of the Host. Government and
credits thereof acquired by the Guaranteeing Government under such
guaranties shall be accorded treatment neither Jess nor more favorable
than that accorded to funds of nationals of the Guaranteeing Govern-
ment deriving from investment activities like those in which the
investor has been engaged, and such amounts and credits shal] be freely
available to the Guaranteeing Government to meet its expenditures in
the national territory of the Host Government.

6. (a) Differences between the two Governments concerning the
interpretation of the provisions of this Agreement shall be settled,
insofar as possible, through negotiations between the two Govern-
nents. If such a difference cannot be resolved within a period of three
months following the request for such negotiations, it shall he sub-
mitted, at the request of either Government, to an ad hoc arbitral tri-
bunal for settlement. in accordance with the applicable principles and
rules of public international law. The arbitral tribunal shall be estab-
lished as follows: Each Government shall appoint one arbitrator : these
two arbitrators shall designate a President. by common agreement. who
shall be a citizen of a third State and 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 Govern-
ment'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 neces-
sary 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 i 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 arbitval tribunal may adopt other regulations
concerning the costs. In all other matters, the arbitral tribunal shall
regulate its ow n procedures,

‘(b) Any claim, arising out of investinents guaranteed in accordance
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

TIAS 63850