DEPARTMENT OF STATE
September 24, 1952
I have the honor to refer to the conversations which have recently taken place between representatives of our two Governments relating to Article III of the Economic Cooperation Agreement between the United States of America and the Kingdom of the Netherlands, signed at The Hague, on July 2, 1948, as heretofore amended or supplemented. As a consequence of those conversations, the Government of the United States of America proposes the following agreement to the Government of the Kingdom of the Netherlands:
The Governments of the Kingdom of the Netherlands and of the United States of America will, upon the request of either of them, consult respecting projects in the Kingdom of the Netherlands proposed by nationals of the United States of America with regard to which guaranties under Section 111 (b) (3) of the Economic Cooperation Act of 1948, as heretofore amended, have been made or are under consideration. With respect to such guaranties extending to projects which are approved by the Government of the Kingdom of the Netherlands in accordance with the provisions of the aforesaid Section, the Government of the Kingdom of the Netherlands 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 Kingdom of the Netherlands 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 of such person arising in connection therewith. The Government of the Kingdom of the Netherlands shall also recognize any transfer to the Government of the United States of America pursuant to such guaranty of any compensation for loss covered by such guaranties received from any source other than the Government of the United States of America;
b. That any claim against the Government of the Kingdom of the Netherlands to which the Government of the United States of America may be subrogated as the result of any payment under a guaranty shall be deemed to be an espoused claim subject to the procedures provided in Article X of the aforesaid Economic Cooperation Agreement, whether or not the condition stated in paragraph 3 of said Article X has been satisfied; provided, however, that such payment is made only after the recipient of the payment has taken reasonable measures to pursue any judicial or administrative remedies which may be available in connection with its claim for a period of at least one year from the initiation of the action on account of which the payment is made;
c. That any guilders acquired by the Government of the United States of America pursuant to the terms of any such guaranty shall be accorded treatment with respect to convertibility which is not less favorable than the treatment which would have been accorded to the holder of the guaranty and that the Government of the United States of America shall be permitted freely to use guilders thus acquired for its administrative expenditures.
If this proposal is acceptable to the Government of the Kingdom of the Netherlands, it is suggested that you reply by note. This note, together with such reply, will constitute an agreement between our two Governments on this subject, the agreement to enter into force on the date of receipt of your reply note.
Accept, Excellency, the renewed assurances of my highest consideration.
For the Secretary of State:
(Sd.) JAMES C. H. BONBRIGHT
Dr. J. Herman van Roijen,
Ambassador of the Netherlands.