810.5051/44
Memorandum by the Legal Adviser (Hackworth) to Mr. Richard W. Flournoy, Assistant to the Legal Adviser
Mr. Flournoy: It appears from the attached memorandum of April 1348 that the interested agencies of this Government are opposed to [Page 871] submitting to the jurisdiction of the Colombian courts, but on the contrary desire to claim sovereign immunity.
The Policy Committee desires that we should claim immunity in this particular case involving the Rubber Development Corporation. It was felt, however, that having in mind the extent to which the governments are engaging in commercial pursuits through various kinds of agencies, the whole question should be studied by the Commercial Policy Committee with the cooperation of this office for the purpose of determining what our future attitude should be. There was some discussion regarding the possibility of an international agreement. These are matters which will be explored by the Commercial Policy Committee.
For our part, we should prepare a short memorandum on the law. As to agencies that are wholly owned and controlled by a government the situation would seem to be reasonably clear; i.e., that they are entitled to immunity from suit. There is, however, another class of agencies, such as corporations with mixed government and private ownership. These give the greater trouble from the juridical point of view. There is also another class of cases, such as the Amtorg and the former Newton Creek Realty Corporation, domestic corporations owned entirely by the Soviet and French Governments respectively, which need to be considered.
For the moment we are concerned only with the suit pending in Colombia, decision on which is stated above. The other interested people should be told of this decision. Since SR prepared the attached memorandum of April 13, I suggest that that office be informed of the conclusion in order that it may proceed with the next step.
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