The Contracting States
Considering the need for international cooperation for
economic development, and the role of private international investment therein;
Bearing in mind the possibility that from time to time
disputes may arise in connection with such investment between Contracting States and
nationals of other Contracting States;
Recognizing that while such disputes would usually be
subject to national legal processes, international methods of settlement may be
appropriate in certain cases;
Attaching particular importance to the availability of
facilities for international conciliation or arbitration to which Contracting States and
nationals of other Contracting States may submit such disputes if they so desire;
Desiring to establish such facilities under the
auspices of the International Bank for Reconstruction and Development;
Recognizing that mutual consent by the parties to
submit such disputes to conciliation or to arbitration through such facilities constitutes
a binding agreement which requires in particular that due consideration be given to any
recommendation of conciliators, and that any arbitral award be complied with; and
Declaring that no Contracting State shall by the mere
fact of its ratification, acceptance or approval of this Convention and without its
consent be deemed to be under any obligation to submit any particular dispute to
conciliation or arbitration,
Have agreed as follows: