Canadian Treaty Series
E101489 - CTS 1971 No. 42
EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF JAMAICA CONSTITUTING AN AGREEMENT RELATING TO CANADIAN INVESTMENTS IN JAMAICA INSURED BY THE GOVERNMENT OF CANADA THROUGH ITS AGENT, THE EXPORT DEVELOPMENT CORPORATION
The High Commissioner for Canada to the Prime Minister and Minister of External Affairs of Jamaica
KINGSTON, JAMAICA, November 2, 1971
Rt. Hon. H. L. Shearer,
Prime Minister and Minister of External Affairs,
I have the honour to refer to conversations which have recently taken place between the Government of Canada (the Insuring Government) and the Government of Jamaica (the Host Government) with a view to promoting the development of economic relations between the two countries.
The particular facility under consideration has been foreign investment insurance by the Insuring Government, through its agent the Export Development Corporation. The purpose of such facility is to promote investments in other countries by Canadian nationals whether individuals or corporations (including non-Canadian subsidiaries), by providing protection against specific risks to investments in projects approved by the Government of the investment-receiving (host) country. The specific risks against which the Insuring Government offers protection are:
(a) war, riot, insurrection, revolution or rebellion;
(b) expropriation, confiscation or deprivation of any property right by a government or an agency thereof;
(c) inconvertibility of foreign exchange.
On the basis of the conversations held, I have the honour to confirm the understanding between the Government of Jamaica and the Government of Canada as follows:
1. Subject to paragraph 2, when an investment suffers a loss by reason of a cause for which the Insuring Government has assumed the risks, the Host Government shall authorize the Insuring Government to exercise the rights having devolved on it by law or having been assigned to it by the predecessor in title;
2. To the extent that the laws of the Host Country partially or wholly invalidate the acquisition by the Insuring Government of any interests in any property within its national territory, the Host Government shall permit the investor and the Insuring Government to make appropriate arrangements pursuant to which such interests are transferred to an entity permitted to own such interests under the laws of the Host Country;
3. The Insuring Government shall assert no greater rights than those of the transferring investor under the laws of the Host Country with respect to any interest transferred or succeeded to as contemplated in paragraphs 1 and 2;
4. If the Insuring Government makes payments to any investor under an insurance contract made pursuant to the present agreement, the Host Government shall, subject to the provisions of paragraph 2, recognize the transfer to the Insuring Government of any currency, credits, assets, or investment on account of which payment under such an insurance contract is made;
5. Should the Insuring Government acquire amounts and credits of the lawful currency of the Host Country under investment insurance contracts, made pursuant to the present agreement, the Host Government shall accord to those funds treatment no different than that which it would accord if such funds were to remain with the investor; it shall make such amounts and credits freely available to the Insuring Government to meet its expenditures in the national territory of the Host Country.
6. Any dispute regarding the interpretation or application of the provisions of this agreement or any claim against the Government of Jamaica to which the Government of Canada may succeed as transferee or which may arise from the events causing payment under investment insurance shall, upon the request of either Government be the subject of negotiations between the Governments and shall be settled, insofar as possible, in such negotiations. If, within a period of three months after a request for negotiations, the two Governments are unable to settle any such dispute or claim by agreement, the dispute or claim shall be referred upon the initiative of either Government to a sole arbitrator, selected by mutual agreement, for final and binding determination in light of the applicable principles of international law. If the two Governments are unable to select an arbitrator within a period of three months after indication by either Government of its desire to arbitrate, the President of the International Court of Justice shall, at the request of either Government, designate the arbitrator.
7. I have the honour to propose that, if the foregoing is acceptable to your Government, this Note, 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 Government 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 insurance contracts issued while the agreement was in force for the duration of these contracts; provided that in no case shall the agreement continue to apply to such contracts for a period longer than fifteen years after termination of this agreement.
8. Accept, Excellency, the renewed assurances of my highest consideration.
Victor C. Moore
High Commissioner for Canada
The Prime Minister and Minister of External Affairs of Jamaica to the High Commissioner of Canada
KINGSTON, JAMAICA, November 2, 1971
His Excellency Victor Moore,
High Commissioner of Canada,
I have the honour to acknowledge receipt of Your Excellency's Note of 2nd November 1971, which reads as follows:
"(See Canadian Note of November 2, 1971)"
I have the honour to inform Your Excellency that the foregoing proposals are acceptable to the Government of Jamaica and that in consequence Your Excellency's Note and this reply should constitute an Agreement between our two Governments in this matter which shall enter into force with effect from the date of this letter.
Accept, Excellency, the renewed assurances of my highest consideration.
Hugh Lawson Shearer
Prime Minister and Minister of External Affairs