Canadian Treaty Series
E101501 - CTS 1971 No. 28
EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE CONSTITUTING AN AGREEMENT RELATING TO CANADIAN INVESTMENTS IN SINGAPORE INSURED BY THE GOVERNMENT OF CANADA THROUGH ITS AGENT THE EXPORT DEVELOPMENT CORPORATION
The High Commissioner of Canada to the Minister of Finance of the Republic of Singapore
CANADIAN HIGH COMMISSION
KUALA LUMPUR, July 26, 1971
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 would further development of economic relations between Singapore and Canada, and to guarantees of such investments by the Government of Canada, through its agent the Export Development Corporation. I also have the honour to confirm the following understandings reached as a result of those discussions:
1. In the event of a payment by the Export Development Corporation under a Contract of Insurance for any loss by reason of any cause described in paragraphs 2(a), (b), (c) and (d) the Corporation will be recognized by the Government of Singapore and by the laws of Singapore as successor to, or subrogated to all the rights of the investor for the purpose of recovering the amount of that loss.
2. In the event of payment by the Corporation under a Contract of Insurance for any such loss the Corporation will be accorded by your Government and by the laws of Singapore treatment as favourable as that accorded other persons suffering loss by reason of the causes described below:
(a) War, riot, insurrection, revolution or rebellion in Singapore;
(b) The arbitrary seizure, expropriation, confiscation or deprivation of use of any property by a Government, or agency thereof, in Singapore;
(c) Any action by a Government, or agency thereof, in Singapore, other than action of the kind described in paragraph (b) that deprives the investor of any rights in, or in connection with, an investment, and;
(d) Any action by a Government, or agency thereof, in Singapore, that prohibits or restricts transfer of any money or removal of any property from that country.
3. This Agreement shall apply only with respect to insured investments in projects or activities approved in writing by the Government of Singapore.
4. In the event of nationalization or expropriation of industry or business, regardless of paragraph 2 above, the investor, or in a case where a claim has been paid, the Government of Canada, will be entitled to fair compensation for properties thus confiscated. No claim thereof may be made under this agreement unless all local remedies have been exhausted.
5. Differences between the two Governments concerning the interpretation and application of provisions of this agreement or any claim arising out of investments insured 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 be settled, insofar as possible, through negotiations between our two Governments. If such differences 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 Hoc Tribunal for settlement in accordance with applicable principles and rules of public international law. The Arbitral Tribunal shall consist of three members and shall be established as follows: each Government shall appoint one arbitrator; a third member, who shall act as Chairman, shall be appointed by the other two members. The Chairman shall not be a national of either party. The arbitrators shall be appointed within two months and the Chairman 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. The Arbitral Tribunal shall decide by majority vote. Its decision shall be binding and definitive. Each of the Governments shall pay the expense of its member and its representation in the proceedings before the Arbitral Tribunal; expenses of the Chairman and the other costs shall be paid in equal parts by the two Governments. The Arbitral Tribunal may adopt other regulations concerning costs. In all other matters, the Arbitral Tribunal shall regulate its own procedures. Only respective Governments may request arbitral procedure and participate in it.
6. I have the honour to propose that, if the foregoing is acceptable to your Government, this note, which is authentic in English, French and Malay, and your reply to that effect shall constitute an agreement between our two Governments which shall enter into force on the date of your reply. This Agreement shall continue in force until terminated by either party on six months notice in writing to the other. In the event of termination, the provisions of the Agreement shall continue to apply, in respect of guarantees issued by Canada while Agreement was in force, for the duration of those guarantees; provided that in no case shall the Agreement continue to apply to such guarantees for a period longer than fifteen years after termination of this Agreement.
Accept, Excellency, renewed assurances of my highest consideration.
John G. Hadwen
High Commissioner of Canada to Singapore
The Permanent Secretary, Economic Development Division, Ministry of Finance of the Republic of Singapore to the High Commissioner of Canada
30th July, 1971
His Excellency John G. Hadwen
High Commissioner of Canada
I have the honour to acknowledge receipt of your Note dated 26th July, 1971 which reads as follows:
(see Canadian Note of July 26, 1971)
In reply, I have the honour to inform you that the Singapore Government confirm the understandings as set up in your Note and will regard that Note and this reply as constituting an agreement between the Government of the Republic of Singapore and the Government of Canada, the agreement to enter into force on the date of this reply.
Accept, Excellency, the assurances of my highest consideration.
G. E. Bogaars
(Economic Development Division)