DEPARTMENT OF STATE
Washington
September 24, 1952
Sir:
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:
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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;
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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;
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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
His Excellency
Dr. J. Herman van Roijen,
Ambassador of the Netherlands.
