1 The first arbitration involving the United States Investment Guaranty Program arose out of a claim by Valentine Petroleum & Chemical Corp. It was reported in 9 ILM 889, 1144 (1970).

2 Il ILM 1223 (1972).

3 Section 1.15 provided in part:

Expropriatory Action. The term “Expropriatory Action” means any action which is taken, authorized, ratified or condoned by the Government of the Project Country, (1) commencing during the Guaranty Period, with or without compensation therefor, (2) and which for a period of one year (directly) results in preventing:

(a) the Investor from receiving payment when due in the currency specified of die principal amounts of or the interest on debt securities, or amounts, if any, which the Foreign Enterprise owes the Investor in connection with the securities; or

(b) the Investor from effectively exercising its fundamental rights with respect to the Foreign Enterprise either as shareholder or as creditor, as the case may be, acquired as a result of the Investment; or

(c) the Investor from disposing of the Securities or any rights accruing therefrom; or

(d) the Foreign Enterprise from exercising effective control over the use or disposition of a substantial portion of its property or from constructing the Project or operating the same; or

(e) the Investor from repatriating amounts received in respect of the Securities as Investment Earnings or Return of Capital, which action commences within the eighteen (18) months immediately succeeding such receipt;

provided, however, that any action which would be considered to be an Expropriatory Action if it were to continue to have any of the effects described above for one year may be considered to be an Expropriatory Action at an earlier time if AID should determine that such action has caused or permitted a dissipation or destruction of assets of the Foreign Enterprise substantially impairing the value of the Foreign Enterprise as a going concern. Ibid., n.4, at 1230–31 (quoted by Tribunal).

4 Ibid., 1227–28.

5 Ibid., 1228.