511.51D/58⅔
Mr. P. T. Culbertson, of the Division of Western European Affairs, to the Under Secretary of State (Cotton)
Mr. Cotton: The statement which Mr. Gordon made at the opening of the Convention on the Treatment of Foreigners at Paris was in part as follows:
“This study of the draft convention has made it apparent that the right which the Constitution of the United States of America reserves to the several states to enact laws upon various matters, covers many of the important subjects dealt with by the proposed convention. For instance, the rights of foreigners with respect to real estate within their territories is a question which, under our Constitution and the system of laws flowing therefrom, falls within the exercise of their legislative powers by the several states, and in consequence the right of foreigners to own lands and to succeed thereto by inheritance is prohibited in some of the states by statute, and in others by their constitution as well. Likewise, the several states are entitled to withhold and to grant freely or conditionally the privilege of engaging in business within their borders to corporations organized under the laws of another jurisdiction . . . .”
Mr. Hudson apparently feels that the Department has determined as a matter of fact that international agreements of this sort cannot be entered into by this Government because of the provisions of our Constitution. However, it has been the general policy of the Department to abstain as far as possible from concluding treaties with foreign governments, the provisions of which directly affect the legislative power of the several states. This policy, as I understand it, has been adopted not necessarily because we could not as a Government enter into this type of agreement but because it seems preferable to avoid unnecessarily committing the states in these matters.