New Delhi, 2 February 1966The American Ambassador to the Indian Secretary,
Department of Economic Affairs
New Delhi,
February 2, 1966
Excellency :
I have the honor to refer to the Agreement effected by the exchange of notes of September 19, 1957, as, amended by the exchange of
notes of December 7, 1959, between our two Governments relating to the investment guaranties which may be issued by the Government
of the United States of America for investments in activities in India. After the conclusion of these agreements, legislation has
been enacted in the United States of America modifying and augmenting the coverage to be provided for 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 India,
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 aforementioned agreements will be applicable
to such guaranties.
Upon receipt of a note from your Excellency indicating that the foregoing is acceptable to the Government of India 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 in reply.
Accept, Excellency, the renewed assurances of my highest consideration.
Sd /-
CHESTER BOWLES
His Excellency
S. BHOOTHALINGAM,
Secretary,
Department of Economic Affairs,
Ministry of Finance,
Government of India,
New Delhi.
The Indian Secretary, Department of Economic Affairs,
to the American Ambassador
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPTT. OF ECONOMIC AFFAIRS.
New Delhi,
February 2, 1966
Excellency,
I have the honour to refer to Your Excellency’s note of even date which reads as follows :
“I have the honor to refer to the Agreement effected by the Exchange of Notes of September 19, 1957 as amended by the Exchange of
Notes of December 7, 1959, between our two Governments relating to the investment guarantees which may be issued by the Government
of the United States of America for investments in activities in India. After the conclusion of these agreements, legislation has
been enacted in the United States of America modifying and augmenting the coverage to be provided investors by investment guarantees
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 India,
the Government of the United States of America is prepared to issue investment guarantees 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 aforementioned agreements will be applicable
to such guarantees.
Upon receipt of a note from your Excellency indicating that the foregoing is acceptable to the Government of India 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 in reply.
Accept, Excellency, the renewed assurances of my highest consideration.”
I have the honour to inform Your Excellency that the foregoing provisions are acceptable to the Government of India and it is our
understanding that Your Excellency’s note and this reply constitute an Agreement between the two Governments on this subject, to
enter into force from today.
Accept, Excellency, the renewed assurances of my highest consideration.
Sd /-
S. BHOOTHALINGAM
Secretary to the Government of India.
His Excellency Mr. CHESTER BOWLES
Ambassador of the United States of America,
Shanti Path, Chanakya Puri,
New Delhi.
The Indian Secretary, Department of Economic Affairs,
to the American Ambassador
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPTT. OF ECONOMIC AFFAIRS
New Delhi
February 2, 1966
Excellency,
By Exchange of Notes on September 19, 1957 and December 7, 1959, the Government of India and the Government of the United States
of America agreed to institute the Investment Guarantee Programme for guarantees against inconvertibility and expropriation.
2. The Government of the United States of America is now preparing to employ the full range of investment guarantees authorized
by law to encourage investments of United States nationals in projects approved by the Government of India and has proposed
by its note of today’s date an amendment to the above-mentioned exchanges of notes which would enable the Government of the
United States of America to issue such additional forms of guarantees to which the Government of India has agreed.
3. The understandings between the respective Governments in respect of the said amendment are as set forth below.
4. It is understood that there would be no claim for reimbursement against the Government of India resulting from a payment made
by the Government of the United States on an extended risk guarantee.
5. It is also understood that the procedures for intergovernmental negotiations and arbitration contained in the prior exchanges
of notes would apply, with respect to any other additional forms of guarantees only in the respect of losses attributable to acts
of the Government of India which involve questions of liability under public international law.
6. It is further understood that the principle contained in paragraph 3 of the 1957 exchange of notes will be applied to any property
or commercial claims transferred to the United States in exchange for compensation under a guarantee covering an investment in
an approved project.
7. It is understood that when the risks covered by an extended risk guarantee include those set forth in the 1957 and 1959 Exchanges
of Notes, the obligations of the Government of India and the Government of the United States for the risks covered in those exchanges
of notes would remain unchanged. No other obligations would be required of the Government of India with respect to the additional
forms of guarantees which the said amendment will allow to be written.
8. On receipt of a note from Your Excellency confirming that this sets out the true understanding between the two Governments
in respect of the said amendment, this will constitute an integral part of the agreement effected today between our two Governments
on this subject.
9. Accept, Excellency, the renewed assurances of my highest consideration.
Sd /-
S. BHOOTHALINGAM
Secretary to the Government of India.
His Excellency Mr. CHESTER BOWLES
Ambassador of the United States of America,
Shanti Path, Chanakya Puri,
New Delhi.
The American Ambassador to the Indian Secretary,
Department of Economic Affairs
New Delhi,
February 2, 1966
Excellency :
I have the honor to refer to Your Excellency’s note of even date which reads as follows :
By Exchange of Notes on September 19, 1957 and December 7, 1959, the Government of India and the Government of the United States of
America agreed to institute the Investment Guaranty Program for guaranties against inconvertibility and expropriation.
2. The Government of the United States of America is now preparing to employ the full range of investment guaranties authorized by
law to encourage investments of United States
nationals in projects approved by the Government of India and has proposed by its note of today’s date an amendment to the above-mentioned
exchanges of notes which would enable the Government of the United States of America to issue such additional forms of guaranties
to which the Government of India has agreed.
3. The understandings between the respective Governments in respect of the said amendment are as set forth below.
4. It is understood that there would be no claim for reimbursement against the Government of India resulting from a payment made
by the Government of the United States on an extended risk guaranty.
5. It is also understood that the procedures for inter- governmental negotiations and arbitration contained in the prior exchanges
of notes would apply, with respect to any other additional forms of guaranties only in respect of losses attributable to acts
of the Government of India which involve questions of liability under public international law.
6. It is further understood that the principle contained in paragraph 3 of the 1967 Exchange of Notes will be applied to any property
or commercial claims transferred to the United States in exchange for compensation under a guaranty covering an investment in
an approved project.
7. It is understood that when the risks covered by an extended risks guaranty include those set forth in the 1957 and 1959 Exchanges
of Notes, the obligations of the Government of India and the Government of the United States for the risks covered in those exchanges
of notes would remain unchanged. No other obligations would be required of the Government of India with respect to the additional
forms of guaranties which the said amendment will allow to be written.
8. On receipt of a note from Your Excellency confirming that this sets out the true understanding between the two Governments
in respect of the said amendment, this will constitute an integral part of the Agreement effected today between, our two Governments
on this subject.
9. Accept, Excellency, the renewed assurances of my highest consideration.”
I have the honor to inform Your Excellency that the foregoing provisions are acceptable to the Government of the United States of
America and it is our understanding that Your Excellency’s note and this reply constitute an Agreement between the two Governments
on this subject, to enter into force from today. Accept, Excellency, the renewed assurances of my highest consideration.
Sd /--
CHESTER BOWLES
His Excellency
S. BHOOTHALINGAM,
Secretary,
Department of Economic Affairs,
Ministry of Finance,
Government of India,
New Delhi.
