893.50 Recovery/6–2548: Telegram

The Secretary of State to the Ambassador in China (Stuart)

927. Following is text Article XI (Settlement of Claims of Nationals) as indicated Deptel 920 June 24:

  • “1. The Governments of the United States of America and China agree to submit to the decision of the International Court of Justice any claim espoused by either Government on behalf of one of its nationals against the other Government for compensation for damage arising as a consequence of governmental measures (other than measures concerning enemy property or interests) taken after April 3, 1948, by the other Government and affecting property or interest of such national, including contracts with or concessions granted by duly authorized authorities of such other Government. It is understood that the undertaking of each Government in respect of claims espoused by the other Government pursuant to this paragraph is made in the case of each Government under the authority of and is limited by the terms and conditions of such effective recognition as it has heretofore given to the compulsory jurisdiction of the International Court of Justice under Article 36 of the Statute of the Court.31 The provisions of this paragraph shall be in all respects without prejudice to other rights of access, if any, of either Government to the International Court of Justice or to the espousal and presentation of claims based upon alleged violations by either Government of rights and duties arising under treaties, agreements or principles of international law.
  • 2. The Governments of the United States of America and China further agree that such claims may be referred, in lieu of the Court, to any arbitral tribunal mutually agreed upon.
  • 3. It is further understood that neither Government will espouse a claim pursuant to this Article until its national has exhausted the remedies available to him in the administrative and judicial tribunals of the country in which the claim arose.”

Article XI now in completely reciprocal terms. European Governments insisted this only way article acceptable their parliaments. Since by U. S. constitutional practice no agreement to international arbitration can be made without Senate ratification, undertaking of U. S. must be strictly limited by existing Senate acceptance compulsory jurisdiction International Court as set forth Declaration of President to U. N. August 14, 1946.32 In order make this article reciprocal, therefore, necessary allow Chinese and other governments having accepted compulsory jurisdiction of Court to limit their undertakings by terms such declarations. Chinese declaration deposited 26 October 1946.

Marshall
  1. 59 Stat. (pt 2) 1055, 1060.
  2. Foreign Relations, 1946, vol. i, p. 53; or Department of State Bulletin, September 8, 1946, p. 452.