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7. Disputes

Any disputes between the Government of Hong Kong

and the Agency arising out of or relating to this letter which cannot be settled by negotiation or other agreed mode of settle- ment shall be submitted to arbitration at the request of either the Government of Hong Kong or the Agency.

The Colonial Secretary and the Director General of the Agency shall each appoint one arbitrator, and the two arbitrators so appointed shall appoint the third, who shall be the Chairman. If within 30 days of the request for arbitration either party has not appointed an arbitrator or within 15 days of the appoint- ment of two arbitrators the third arbitrator has not been appoint- ed, either party may request the Secretary-General of the United Nations to appoint an arbitrator. The procedure of the arbitra- tion shall be fixed by the arbitrators, and the expenses of the arbitration shall be borne by the parties as assessed by the arbi- trators. The arbitrators shall make decisions by a majority vote, and any two shall constitute a quorum. The arbitral award shall contain a statement of the reasons on which it is based and shall be accepted by the parties as the final adjudication of the dis- pute.

IN WITNESS WHEREOF the Government and the Agency have executed this Agreement.

FOR THE GOVERNMENT:

Небромово

J.C.H: Marriott)...........

Assistant Colonial Secretary, for Colonial Secretary, Hong Kong.

28 December 1966 .

FOR THE AGENCY:

Intra

Jaime Balcázar

..Chief,.a.i.,.Experts.Section Division of Implementation Department of Technical Assistance

14 April 1966

(date)