of Thailand and the United States of America, desirous of promoting friendly
relations traditionally existing between them and of encouraging mutually
beneficial trade and closer economic and cultural intercourse between their
peoples, have resolved to conclude a Treaty of Amity and Economic Relations, and
for that purpose have appointed as their Plenipotentiaries:
MAJESTY THE KING OF THAILAND:
Excellency THANAT KHOMAN,
of Foreign Affairs of the Kingdom of Thailand; and THE PRESIDENT OF THE UNITED
STATES OF AMERICA:
Excellency GRAHAM MARTIN,
Extraordinary and Plenipotentiary of the United States of America to the Kingdom
communicated to each other their full powers found to be in due form, have
agreed as follows:
Nationals of either Party shall, subject to the laws relating to the
entry and sojourn of aliens, be permitted to enter the territories of the other
Party, to travel therein freely, and to reside at places of their choice and in
particular to enter the territories of the other Party and to remain therein of
the purpose of:
carrying on trade between the territories of the two Parties and engaging
in related commercial activities; or
developing and directing the operations of an enterprise in which they
have invested or are actively in process of investing a substantial amount of
capital. Each Party reserves the right to exclude, restrict the movement of, or
expel aliens on grounds relating to public order, morals, health and safety.
provisions of (b) above shall be construed as extending to a national of either
Party seeking to enter the territories of the other Party solely for the purpose
of developing and directing the operations of an enterprise in the territories
of such other Party in which his employer has invested or is actively in the
process of investing a substantial amount of capital, provided that such
employer is a national or company of the same nationality as the applicant and
that the applicant is employed by such national or company in a responsible
Nationals of either Party within the territories of the other Party shall
receive the most constant protection and security, in no case less than that
required by international law. When any such national is in custody, he shall in
every respect receive reasonable and humane treatment; and on his demand the
diplomatic or consular representative of his country shall be immediately
notified and accorded full opportunity to safeguard his interests. He shall be
promptly informed of the accusations against him, and allowed ample facilities
to defend himself.
Nationals of either Party shall enjoy in the territories of the other
Party entire liberty of conscience, and, subject to applicable laws, ordinances
and regulations, shall enjoy the right of private and public exercise of their
Companies constituted under the applicable laws and regulations of either
Party shall be deemed to have the nationality of that Party and shall have their
juridical status recognized within the territories of the other Party. As used
in the present Treaty, "companies" means:
with reference to Thai companies: juristic persons under Thai laws,
whether or not with limited liability and whether or not for pecuniary profit;
with reference to United States companies: corporations, partnerships,
companies, and other associations, whether or not with limited liability and
whether or not for pecuniary profit.
Nationals and companies of either Party shall have free access to courts
of justice and administrative agencies within the territories of the other Party,
in all degrees of jurisdiction, both in the defense and in the pursuit of their
rights. Such access shall be allowed upon terms no less favorable than those
applicable to nationals and companies of such other Party or of any third
country, including the terms applicable to requirements for deposit of security.
It is understood that companies not engaged in activities within the country
shall enjoy the right of such access without any requirement of registration or
Contracts entered into between nationals and companies of either Party
and nationals and companies of the other Party, that provide for the settlement
by arbitration of controversies, shall not be deemed unenforceable within the
territories of such other Party merely on the grounds that the place designated
for the arbitration proceedings is outside such territories or that the
nationality of one or more of the arbitrators is not that of such other Party.
No award duly rendered pursuant to any such contract, and final and enforceable
under the laws of the place where rendered, shall be deemed invalid or denied
effective means of enforcement within the territories of either Party merely on
the grounds that the place where such award was rendered is outside such
territories or that the nationality of one or more of the arbitrators is not
that of such Party.
Each Party shall at all times accord fair and equitable treatment to
nationals and companies of the other Party, and to their property and
enterprises; shall refrain from applying unreasonable or discriminatory measures
that would impair their legally acquired rights and interests; and shall assure
that their lawful contractual rights are afforded effective means of enforcement,
in conformity with the applicable laws.
Property of nationals and companies of either Party, including direct or
indirect interests in property, shall receive the most constant protection and
security within the territories of the other Party. Such property shall not be
taken without due process of law or without payment of just compensation in
accordance with the principles of international law.
The dwellings, offices, warehouses, factories, and other premises of
nationals and companies of either Party located within the territories of the
other Party shall not be subject to entry or molestation without just cause.
Official searches and examinations of such premises and their contents shall be
made only according to law and with careful regard for the convenience of the
occupants and the conduct of business.
Nationals and companies of either Party shall be accorded national
treatment with respect to establishing, as well as acquiring interests in,
enterprises of all types for engaging in commercial, industrial, financial and
other business activities within the territories of the other Party.
Each Party reserves the right to prohibit aliens from establishing or
acquiring interests, or to limit the extent to which aliens may establish or
acquire interests, in enterprises engaged within its territories in
communications, transport, fiduciary functions, banking involving depository
functions, the exploitation of land, or other natural resources, or domestic
trade in indigenous agricultural products, provided that it shall accord to
nationals and companies of the other Party treatment no less favorable in this
connection than that accorded nationals and companies of any third country.
The provisions of paragraph 1do not include the practice of professions,
or callings reserved for the nationals of each Party.
Enterprises which are or may hereafter be established or acquired by
nationals and companies of either Party within the territories of the other
Party and which are owned or controlled by such nationals and companies, whether
in the form of individual proprietorships, direct branches or companies
constituted under the laws of such other Party, shall be permitted freely to
conduct their activities therein upon terms no less favorable than like
enterprises owned or controlled by nationals of such other Party or of any third
Nationals and companies of either Party shall enjoy the right to control
and manage the enterprises which they have established or acquired within the
territories of the other Party, and shall be permitted without discrimination to
do all things normally found necessary and proper to the effective conduct of
enterprises engaged in like activities.
Nationals and companies of either Party shall be permitted, in accordance
with the applicable laws, to engage, within the territories of the other Party,
accountants or other technical experts, executive personnel, attorneys, agents
and other specialists of their choice. Moreover, such nationals and companies
shall be permitted to engage accountants and other technical experts, regardless
of the extent to which they may have qualified for the practice of a profession
within the territories of such other Party, for the particular purpose of making
examinations, audits and technical investigations for internal purposes
exclusively for, and rendering reports to, such nationals and companies in
connection with the planning and operation of their enterprises within such
Nationals and companies of either Party shall be accorded national
treatment within the territories of the other Party with respect to:
leasing immovable property needed for their residence or for the conduct
of activities pursuant to the present Treaty;
purchasing and otherwise acquiring movable property of all kinds, subject
to any limitations on acquisition of shares in enterprises that may be imposed
consistently with Article IV; and
disposing of property of all kinds by sale, testament or otherwise.
Nationals and companies of either Party shall have within the territories
of the other Party the same right as nationals and companies of that other Party
in regard to patents for invention, trade marks, trade names, designs and
copyright in literary and artistic works, upon compliance with the applicable
laws and regulations, if any.
Nationals and companies of either Party shall not be subject to the
payment of taxes, fees or charges within the territories of the other Party, or
to requirements with respect to the levy and collection thereof, more burdensome
than those borne by nationals, residents and companies of any third country. In
the case of nationals of either Party residing within the territories of the
other Party, and of companies of either Party engaged in trade or other gainful
pursuit or in non-profit activities therein, such taxes, fees, charges and
requirements shall not be more burdensome than those borne by nationals and
companies of such other Party.
Each Party, however, reserves the right to:
extend specific tax advantages only on the basis of reciprocity, or
pursuant to agreements for the avoidance of double taxation or the mutual
protection of revenue: and
apply special provisions in extending advantages to its nationals and
residents in connection with joint returns by husband and wife, and as to the
exemptions of a personal nature allowed to non-residents in connection with
income and inheritance taxes.
Companies of either Party shall not be subject, within the territories of
the other Party, to the payment of taxes upon income not attributable to sources
within such territories, or upon transactions or capital not attributable to the
operations and investments thereof within such territories.
The foregoing provisions shall not prevent the levying, in appropriate
cases, of fees relating to the accomplishment of police and other formalities,
if these fees are also levied on nationals of all third countries. The rates for
such fees shall not exceed those charged such nationals of any third country.
Neither Party shall apply restrictions on the making of payments,
remittances, and other transfers of funds to or from the territories of the
other Party, except
to the extent necessary to assure the availability of foreign exchange
for payments for goods and services essential to the health and welfare of its
in the case of a member of the International Monetary Fund, restrictions
specifically requested or approved by the Fund.
If either Party applies exchange restrictions, it shall make reasonable
provision for the withdrawal in foreign exchange in the currency of the other
the compensation referred to in Article III, paragraph 2, of the present
earnings, whether in the form of salaries, interest, dividends,
commissions; royalties, payments for technical services, or otherwise; and
amounts for amortization of loans, depreciation of direct investments and
capital transfers, giving consideration to special needs for other transactions.
If more than one rate of exchange is in force, the rate applicable to such
withdrawal shall be a rate that is specifically approved by the International
Monetary Fund for such transactions.
Either Party applying exchange restrictions shall in general administer
them in a manner not to influence disadvantageously the competitive position of
the commerce, transport or investment of capital of the other Party in
comparison with the commerce, transport or investments of any third country.
Each Party shall accord to products of the other Party, from whatever
place and by whatever type of carrier arriving, and to products destined for
exportation to the territories of such other Party, by whatever route and by
whatever type of carrier, treatment no less favorable than that accorded like
products of, or destined for exportation to, any third country, in all matters
customs duties, as well as any other charges, regulations and formalities
levied upon or in connection with importation and exportation; and
internal taxation, sale, distribution, storage and use. The same rule
shall apply with respect to the international transfer of payments for imports
Neither Party shall impose restrictions or prohibitions on the
importation of any product of the other Party, or on the exportation of any
product to the territories of the other Party, unless the importation of the
like product of, or the exportation of the like product to, all third countries
is similarly restricted or prohibited.
If either Party imposes quantitative restrictions on the importation or
exportation of any product in which the other Party has an important interest:
It shall, upon request, inform the other Party of the approximate total
amount of the product, by quantity or value, that may be imported or exported
during a specified period, and of any change in such amount or period; and
If it makes allotments to any third country, it shall afford such other
Party a share proportionate to the amount of the product, by quantity or value,
supplied by or to it during a previous representative period, due consideration
being given to any special factors affecting the trade in such product.
Either Party may impose prohibitions or restrictions on sanitary or other
customary grounds of a non-commercial nature, or in the interest of preventing
deceptive or unfair practices, provided such prohibitions or restrictions do not
arbitrarily discriminate against the commerce of the other Party.
Either Party may adopt measures necessary to assure the utilization of
accumulated inconvertible currencies or to deal with a stringency of foreign
exchange. However, such measures shall deviate no more than necessary from a
policy designed to promote the maximum development of non-discriminatory
international trade and to expedite the attainment of a balance of payments
position which will obviate the necessity of such measures.
Each Party reserves the right to accord special advantages:
to products of its national fisheries;
to adjacent countries in order to facilitate frontier traffic; or
by virtue of a customs union or a free trade area of which either Party
may become a member, or of an interim agreement leading to the formation of a
customs union or free trade area which either Party may enter into. Each Party,
moreover, reserves rights and obligations it may have under the General
Agreement on Tariffs and Trade, and special advantages it may accord pursuant
In the administration of its customs regulations and procedures, each
publish all requirements of general application affecting importation and
apply such requirements in a uniform, impartial and reasonable manner;
refrain, as a general practice, from enforcing new or more burdensome
requirements until after public notice thereof; and
allow appeals to be taken from rulings of the customs authorities.
Moreover, the customs authorities of each Party shall not impose greater than
nominal penalties for infractions resulting from clerical errors or from
mistakes made in good faith as deemed appropriate by the customs authorities.
Nationals and companies of either Party shall be accorded treatment no
less favorable than that accorded nationals and companies of the other Party, or
of any third country, with respect to all matters relating to importation and
Neither Party shall impose any measure of a discriminatory nature that
hinders or prevents the importer or exporter of products of either Party from
obtaining marine insurance on such products in companies of the other Party.
Between the territories of the two Parties there shall be freedom of
commerce and navigation.
Vessels under the flag of either Party, and carrying the papers required
by its law in proof of nationality, shall be deemed to be vessels of that Party
both on the high seas and within the ports, places and waters of the other Party.
Vessels of either Party shall have liberty, on equal terms with vessels
of the other Party and with vessels of any third country, to come with their
cargoes to all ports, places and waters of such other Party open to foreign
commerce and navigation. Such vessels and cargoes shall in all respects be
accorded national treatment and most-favored-nation treatment within the ports,
places and waters of such other Party, but each Party may reserve exclusive
rights and privileges to its own vessels with respect to the coasting trade,
inland navigation and national fisheries.
Vessels of either Party shall be accorded national treatment and most-favored-nation
treatment by the other Party with respect to the right to carry all products
that may be carried by vessel to or from the territories of such other Party,
and such products shall be accorded treatment no less favorable than that
accorded like products carried in vessels of such other Party, with respect to:
duties and charges of all kinds;
the administration of the customs; and
bounties, drawbacks and other privileges of this nature.
Vessels of either Party that are in distress shall be permitted to take
refuge in the nearest port or haven of the other Party, and shall receive
friendly treatment and assistance.
The term "vessels", as used herein, means all types of vessels,
whether privately or publicly owned or operated, but this term does not, except
with reference to paragraphs 2 and 5 of the present Article, include fishing
vessels or vessels of war.
Each Party undertakes
that enterprises owned or controlled by its Government, and monopolies or
agencies granted exclusive or special privileges within its territories, shall
make their purchases and sales involving either imports or exports affecting the
commerce of the other Party solely in accordance with commercial considerations,
including price, quality, availability, marketability, transportation and other
conditions of purchase or sale; and
that nationals, companies and commerce of such other Party shall be
afforded adequate opportunity, in accordance with customary business practice,
to compete for participation in such purchases and sales.
Each Party shall accord to nationals, companies and commerce of the other
Party fair and equitable treatment, as compared with that accorded to nationals,
companies and commerce of any third country, with respect to:
the governmental purchase of supplies;
the awarding of concessions and other government contracts; and
the sale of any service by the Government or by any monopoly or agency
granted exclusive or special privileges.
The present Treaty shall not preclude the application of measures:
regulating the importation or exportation of gold or silver;
regulating to fissionable materials, their radio-active by-products, or
the sources thereof;
regulating the production of or traffic in arms, ammunition and
implements of war, or traffic in other materials carried on directly or
indirectly for the purpose of supplying a military establishment;
regulating, on a non-discriminatory basis, military requisition of
supplies and implements of war in time of emergency or in time of war;
necessary to fulfill the obligations of either Party for the maintenance
or restoration of international peace and security, or necessary to protect its
essential security interests; or
denying to any company in the ownership or direction of which nationals
of any third country or countries have directly or indirectly the controlling
interest, the advantages of the present Treaty, except with respect to
recognition of juridical status and with respect to access to courts of justice
and to administrative tribunals and agencies.
The present Treaty does not accord any right to engage in political
The most-favored-nation provisions of the present Treaty relating to the
treatment of goods shall not extend to advantages accorded by the United States
of America or its territories and possessions, irrespective of any future change
in their political status, to one another, to the Republic of Cuba, to the
Republic of the Philippines, to the Trust Territory of the Pacific Islands or to
the Panama Canal Zone.
The provisions of the present Treaty as regards the most-favored-nation
treatment do not apply to:
favors now granted or which may hereafter be granted to neighboring
States with regard to navigation on or use of boundary waterways not navigable
from the sea; or
favors now granted or which may hereafter be granted in virtue of
national legislation on the promotion of industrial investment.
Each Party shall accord sympathetic consideration to, and shall afford
adequate opportunity for consultation regarding, such representations as the
other Party may make with respect to any matter affecting the operation of the
Any dispute between the Parties as to the interpretation or application
of the present Treaty, not satisfactorily adjusted by diplomacy or other pacific
means, shall be submitted, at the request of either Party, to a panel of
arbitrators for settlement in accordance with applicable principles of
international law. The panel shall be composed of three members, one selected by
each Party and the third chosen by the members selected by the Parties. In the
event the members selected by the Parties are unable to agree upon the third
member within one month, the third member shall be one who is designated by the
Secretary General of the United Nations at the request of either Party.
The present Treaty shall be ratified, and the ratifications thereof shall
be exchanged at Washington, D.C. as soon as possible.
The present Treaty shall enter into force one month after the date of
exchange of ratifications. Thereupon it shall replace and terminate the Treaty
of Friendship, Commerce and Navigation signed at Bangkok on November 13, 1937.
The present Treaty shall remain in force for ten years and shall continue
in force thereafter until terminated as provided herein.
Either Party may, by giving one year's written notice to the other Party,
terminate the present Treaty at the end of the initial ten-year period or at any
the respective Plenipotentiaries have signed the present Treaty and have affixed
hereunto their seals.
in duplicate, in the Thai and English languages, both equally authentic, at
Bangkok, this twenty-ninth day of May in the two thousand five hundred and ninth
year of the Buddhist Era, corresponding to the one thousand nine hundred and
sixty sixth year of the Christian Era.
Kingdom of Thailand:
Mr. Thanat Khoman
United States of America
Mr. Graham Martin