- 48 - The [tribunal determined that the] value of Aminoil's nationalized operations on September 19, 1977 was $83,000,000, net of liabilities owing from Aminoil to Kuwait (i.e., $206,041,000 less $123,041,000). The five year delay in payment (from September 19, 1977 through July 1, 1982) caused Kuwait to accrue substantial additional debt owing to Aminoil. Had there been no delay in payment, Kuwait would have simply paid Aminoil $83,000,000. The "inflation" factor, like the "interest" factor, was compensation for the delay in payment, and therefore, it is properly treated as ordinary income under section 61. C. Discussion 1. Introduction The parties agree that the disputed item was received pursuant to the award and that the intention of the tribunal governs as to whether the disputed item is disguised compensation for the concession or a payment in the nature of interest. Respondent argues that the award is clear on its face and that the disputed item is in the nature of interest. Respondent argues further that we are constrained, in any event, by the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958 (the Convention), 21 U.S.T. 2517, (entered into force Dec. 29, 1970), from “reevaluat[ing] the matters decided by the Tribunal”. We shall first determine whether the Convention constrains us from interpreting the award. Since we believe that it does not, we shall then consider whether the award is ambiguous. Since we believe that it is, we shall interpret it, using the tools at our disposal. As will be seen, we agree with petitioner’s interpretation of the award.Page: Previous 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Next
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