To the Senate of the United States:

With a view to receiving the advice and consent of the Senate to

ratification, I transmit herewith the Treaty Between the Government

of the United States of America and the Government of the

Republic of Honduras Concerning the Encouragement and Reciprocal

Protection of Investment, with Annex and Protocol, signed at

Denver on July 1, 1995. I transmit also, for the information of the

Senate, the report of the Department of State with respect to this

Treaty.

The bilateral investment treaty (BIT) with Honduras is the

fourth such Treaty with a Central or South American country. The

Treaty will protect U.S. investment and assist Honduras in its efforts

to develop its economy by creating conditions more favorable

for U.S. private investment and thus strengthen the development

of its private sector.

The Treaty is fully consistent with U.S. policy toward international

and domestic investment. A specific tenet of U.S. policy,

reflected in this Treaty, is that U.S. investment abroad and foreign

investment in the United States should receive national treatment.

Under this Treaty, the Parties also agree to international law

standards for expropriation. The Treaty includes detailed provisions

regarding the computation and payment of prompt, adequate,

and effective compensation for expropriation; free transfer of funds

related to investments; freedom of investments from specified performance

requirements; fair, equitable, and most-favored-nation

treatment; and the investor’s freedom to choose to resolve disputes

with the host government through international arbitration.

I recommend that the Senate consider this Treaty as soon as possible,

and give its advice and consent to ratification of the Treaty,

with Annex and Protocol, at an early date.

WILLIAM J. CLINTON.