Application instituting proceedings

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020-19530815-APP-1-00-EN
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Date of the Document
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COURINTERNATIONALDE JUSTICE

MÉMOIRES, PLAIDOIRIES ET DOCUMENTS

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«ÉLECTRICITÉ DE BEYROUTH >>
(FRANCEcLIBAN)

INTERNATIONALCOUROFJUSTICE

PLEADINGS,ORAI,ARGUMENTS,DOCUMENTS

"ÉLECTRICITÉ DE BEYROUTH"
COMPANY CASE

(FRANCv.LEBANON)Tous droits réservés par la
Cour internationale de Justice

Al1 rights reserved by the
International Court of Justice Le présent volume doit être cité comme suit:
qiC. 1. J.hlémoires, Agaire de la Société « Électricitde BeyrozcfhB

(France c.Liban) 11

This volume should he cluoted as:

"I.C. J. PEeadzrzgs,"Élec~ricitéde Beyrottlh" Company case
(France 17.Lebanon)"

Na de vente:

Sales numberAFFAIRE DE LA SOCIÉTÉ iÉLECTRICITI? DE BEYROUTH »

(FRANCE c.I.IRAN)

"ELECTRICITI D?E BEYROUTHJJ COR,1I"ANYCASE
(FRAYCE v. LEBANON) COUR IXTE-.ATIONALE DE JUSTICE

MÉMOIRES, PLAIDOIRIES ET DOCUMENTS

AFFAIRE DE LA SOCIETE

(ELECTRICITÉ DE BEYROUTH »
(FRANCE c.LIBAN) INTERNAT1,ONAL COURT OF JUSTICE
--

PLEADINGS, ORALARGUMENTS, DOCUMENTS

"ÉLECTRICISE DE BEYROUTH"

COMPANY CASE
(FRANCEv. T,F,BANON) PREMIÈ~IEPARTIE

-

REQUÊTE INTRODUCTIVE D'INSTANCE
ET PIECES DE LA PROCÉDURE &RITE

PART I

APPLICATION INSTITUTING PROCEEDINGS,

AND PLEADINGS III.-APPLICATION INSTITUTING PROCEEDINGS
ON BEHALF OF THE GOVEllISi\IEWT 017 THE

FRENCH REPUBLIC
f Translation by theRegistryj
August 1953.
To the President,
And Members of the Iriternational Court of justice,

1, the undersigned, duiy authorized by the Government of the

French Republic, selecting as address for service the French
Embassy at The Hague,
Having regard to Article 36,paragraph I, of the Statute of the
Court,
Having regard to Article 23 of the Agreement of January qth,
1948, between the Governrnent of the French Reyublic and the

Government of the Lebanese Republic,
Having regard to Article 40, paragraph I, of the Statute of the
Court,
Have the honour to address to you the following Application :

On January qth, 1948, the Gover~imcnt of the French Republic
and the Government of the liepublic of Lebanoii coiicluded an
Agreement for the purpose of inodifying the Agreement which had
been concluded between them on January zgth, 1944, and which
had been denounced by the French Government, and for the purpose
of settling al1the fiilancial problems resulting from the licliiidation
of the past and, at the same tirne, their monetary ancl financial
relations for the future. Ratifications having been cuchanged on
February rgth, 1949, the -4greement entered into force011February
16th, 1949 (Joztnial oficiede la Républiqîce/rangnise,bIarch 14th-

15th 1949, 1). 2651).
Article 23 of this Treaty provide: "The WighCoiitracting Parties
agree that any disputes wl-iichniay arise from the applicatiori of the
present Agreement or of its Annexes shall, nt the reqiiest of
the Party concerned, be submitted for arbitratioii 11ythe Court
of International Justice."
The Agreement of ljanuary 24th, 1948, includes, among the
obligations assumed by cacli of the Contracting Parties, an under-
taking by the LebaneseGovernment, contained in the letter alipear-
. ing as Annex No. 12 to tlic Agreement, trith repxrd to conces-
-ioriç of French cornpanies and companies witli French capital in
Lebanon

"The Lebanese Govern~neilt, considering that by reasori of
the termiiiation of the Mandate and the proclamation of
Lebanese independcnce, it may be desirable to effcct certain .
modifications in thc iiistruments and annexcs governiiig the APP1,ICATIOS ISÇTITUTINC PROCITEDISGÇ (AUC. 1953) 10

concessions of French companies and companies witIi French
capital operating upon its territory, and.in the tests defining
the manner in which they should bc applied, proposes to
initiate conversations with each of the companies concerned in
the spirit of the discussions already held to this end.
The purpose of these conversations will be to arrive at a
solution, in a contractual mariner and within the framework
of the esisting law, such as to eriablc the Lehanese Govern-
incnt to submit the modifications in qtiestiori for the approvaI
of Parliamcnt.

Until the putting into cffect of thesc ~ncidilicatioris, the
instruments, annexes and texts which governed the conces-
sions of these companies on January ~st, 1944, will remain
in force.

The present nzod~cs vivendi is to be rcad with the various
provisions of the Agreement of to-day's date l."

As the result of breaches of the undertakings subscribed to by the
Lebanese Government in favour of the Government of the French
Republic, in the said Annex No. 12, the latter Government, on the
hasis of Article 23 of the Treaty of January 24th, 1948, is led to
scise the International Court of Justice of the yresent Application.
The SociétéElectricité de Beyrouth isa Frerich limited Company
with itsHead Office at 7, Boulevard de la Madeleine in Paris.
It was incorporated on January 3rd, 1923, for a period of 99 years,
and its objects are the study, establishment and exploitation of

public scrvices such as transport, lighting and yower. The Company
is tlie holder of five concessions in Lebanon, of which the yresent
Application is concerned with four :

(1) Concession for the distribution of clectrical energy for al1
purposes in the town of Beirut and its surrounding district.
(2) Concession for the construction and exploitation of high tension
electrical energy mains for the town of Beirut and within a
perimeter around Beirut.
(3) Concession for the establishment and esploitation of a hydro-

electric factory on the Xahr-El-Safa.
(4) Concession for the distribution of electrical energy in certain
villages of Lebanon.

These various concessions fa11within the catcgory of instruments
refer--- to in the letter. Annex No. 12. to the Franco-Lebanese
Agreement of January ~4th~1948, citkd alovc, which provides that
any modifications to be effected in the concessioris of French com-
panies and companies with French capital should be effected in a
contractual manner and that "until the putting iiito effect of these

l Translationby the Registry. APPLICrZTIOW INSTITUTING PROCEEDINGS (AUG. 1953) II
modifications, the instruments, annexes and texts which governed
the concessio~is of these companies on January rst,1944, will
remain in force".
Instead of seeking to secure modifications of the four concessions
of the SociétéÉlectricité de Beyrouth in a contractual manner,

as it was bound to do by the terms of the Agreement of Janu-
ary zqth, 1948, the Lebanese Government acted unilaterally and,
as a final stepin a series of measures contrary to the General Con-
ditions [Cahiers des Charges] of the concessions, dccidcd to put the
Company's electricity concessions under provisional State control.
by decrees of March 19th and April 4th, 1953.
The history of the Lebanese breaches of the Franco-Lebanese
Agreement of January 24th, 1948,goes back to the eiid of the year
1951. At that time, as the result of certain pressure, a campaign
was started with the object of securing a reduction of the charges
for electricity, which went as far as a collective refusal of consumers
to pay the ratcs corresponding ta their consumytion of electricity :
this movement was al1 the more difficult to understaiid in that
the Company \irasfar from applying the maximum rates authorized
by the General Conditions of its concessions, that its rates were
lower than those of many towns of comparable size and that,
furthcrmore, the general rates applied had been formally approvcd

by the authority granting the concession, and confirmed by the
Servicede contrôle in 1943.
According to the General Conditions of June 4th, 1925, Article 13
(Co~icession I), the Company retained liberty to raise certain
reduced charges which it allowed to certain spccial catcgorics of
consumcrs, provided that the charges did not exceed thc general
rates which had been confirmed. However, whereas the Company's
right to raise the reduced rates had never been chsllcngcd by the
authority granting the concessions, the Service decontrôleoihjected
to it for the first time i1950 T.he Company offered to allow the
dispute to be settledby the legal means provided for in tlie (;encra1
Conditions, but its offer remained unanswered. The 1,chanesc Gov-
qrnment, on the other hand, allowed the opinion to hccorne currcnt
that the Company was inbreach of the concessioriary instruments.
Accordingly, the public campaign against the elcctricity rates
developed into an invitation to the general public to refiise topay
for electricity.

It was for the Lebanese Government to put its concessionnaire
in a position to resist this pressurear from doing so,,the Lebanese
Government refused to permit the Company to exerciçcits clernen-
tary right of cutting off the current in cases of non-pay~ncnt. The
consumers' strike naturally developed and by January 1952, jOO/o
of the accounts were not paid.
Ry lettcrs of February 4th and March 4th, 1952, the Company
took note of the refusa1 of the Lebanese Government to restore
order and to put its concessionnaire in a position to perform the AP1~I.IChTIOS ISSTITUTISG PROCEEDINGS (AUG. lgj3)
12
service in cluestion and it indicated that if it were obliged to accept
the reductions of the rates imposed by authority, it woulcl claim
the reparation due forthese infringements of its rights.
The Lebanese Governrnent decided to request two Dutch experts
to undertake an enquiry. After recognizing that "the rates are

based on sound economic pnnciples and can satisfy the nccds of
the consumers", the experts recommended, in order to restore calm,
a slight reduction for those consumers only who did not use inore
than 20 kurh. yer month, "without changing the other rates".
But these recomrnendations were not carried out by the Lebanese
Government, which complied with the demands of the Consumers'
Strike Cornmittees and issued Decrec No. 8904 on July ~oth, 1952,
suppierne~ited by Decrees No. gzzS of August qth, 1952, and
No. 9379 of Scptember jth, 1952.
DecreeNo.8904lowersal1applicablegcneral rates from 21 Lebanesc
piastres to 16.50 for lighting, from 13.25 to 10.25 for low tension
power and from 13.25 to 8.25 for high tension power; the reduced
rates for certain domestic uses were altered for al1 consumption
above a certain Ievel from 8 piastres to 6.50, this rate beconiing a

true flat rate.The number of consurnersbenefitting from the reduced
prices \vas increased from 8000 to 48,000 ;furtherrnore, the reduc-
tion !vas made retroactive to January rst, 1952.

These arbitrary rneasures upset the financial equilibrium of the
concession and, if the Lebanese Government had deemed them
neccssary in order to restore ordcr, they ought to have involved
compensation. But the negotiations entered into by the Company
to obtsin the re-establishment of the financial equilibrium of its
concessions did not succeed. The new decrees, No. 9228 of August
~gth, 1952, and No. 9379 of September 5th, 1952, issued by the
Lebanese Government, fixing new rates for industrial consumers.
gave rise to fresh protests in face of lvhich the Government yielded
and enjoined the Company not to collect the reduced rates which it

itself had just decreed but only a payment on account of 5 pias-
tres per kwh, "on the amount consumed in the past and in the
future until the Council of Ministers should have decidecl what
ought to be done" (letter from the Minister of Public Works to the
Company, No. 2380, of November 17th, 1952).
In reply to the Company's demands, the Minister of Public
Works wrote a5 follows on Deccmber xst, 1952 :"As regards your
two letters of July 2znd and Oclober zgth, 1952, the questions
raised therein are at present being disc~zssedby the Council of
Ministers wliich \vil1shortly invite you to enter into negotiations
with it in order to fix new bases which will be the subject of an
agreement with your Company aiid will include al1 questions
still outstanding concerning the financing of new means for pro-
ducing electrical power, electricity rates and the question of
exploitation."

2 APPLICATION INSTITUTING PROCEEDINGS (AUG. 1gj3) 13
Thus, on December ~st, 1952, the Lebanese Governrnent still
recognized itç obligation under the letter annexed as No. xz to
the Agreement of January qth, 1948, to negotiate with the Com-
pany in respect of any modifications iwished to make in the con-

cessions. In the same letter of Decernber ~st1952, the Lebanese
Government also recognized the merit of the financial and con-
structional record of the Company during the year 1952. But
these words were not translated into action, and on February
23rd, 1953, the Company was obliged to clraw the attention of
the Lebanese Government to the gravity of the situation since
the decrees had not been respected by industrialists ancl since
public offices for more than a year had refrained from paying for
the current they had consiimed. Having received no practical
reply from the Government, the Company, by a letter dated hfarch
and, 1953, requested arbitration, in piirsuance of its General
Conditions, of the questions which were the subject of clispute
with the Lebanesc Government (Article 39, Concession of June
4th, 1925 ; Article 32, Concession of August 26th, 1925 ;Article
28, additional clause, oMay 23rd, 1929) .he General Conditions
in each case provide that the concessionnaire is entitled to refer
its disputes with the Administration concerning the execution or
interpretation of the clauses of the General Conditions to an
arbitration commission.
On March ~gth, 1953 ,he Lcbanese Government issued a Decree
enacting that the concession for the productionof electrical power
in Beirut should be brought provisionally under State control,
at the expense, under the responsibility and on behalf of the

Company, and appointing two receivers. The Iatter took possession
of the offices and archives of the Company and expelIed thc Com-
pany's respresentative in Beirut from his office by force.
On April 4th, 1953 , further Decree extended the receivership
to al1 the Company's electricity concessions.
The Company -protested against this provisional bringing under
State control, which had been dccided upon in violation of the
provisions of the General Conditions and renewcd its request
for arbitration. No reply was ever received. Al1 the Company's
dificulties, which have been rccited in this Application, including
the provisional placing under State control, concern the applica-
tion of the General Conditions and the interprctation of the
rights of the concessionnaire and arc a proper subject-matter for
arbitration. The arbitrary reduction of the rates by the Lebanese
Government is a violation of the rights which the Company holds
under the General Conditions. There exists no couritry where the
right of the authority granting the coricession to modify, in the
general interest, the conditions of exploitation of a public utility
is not accompanied by an obligation to cornpeiisate the conces-
sionnaire for the damage resulting from modifications of the
financial clauses of a concessionary contract. Administrative case APPLICATION IMSTITUTING PROCEEDIXGS (AUG. 1953) 14
law in Lebanon on the subject is the samc as that of the :French
Conseil d'État.
The refusal of the Lebanese Government to accept arbitration,
as it is bound to do under the General Conclitions, constitutes a
further violation of the obligations it assumed in lettcr No. rz
annexed tothe Agreement of January qth, 1948 ,nd this violation
constitutes a culminating point of al1 the measures wvhichit has

taken in contravention of the instruments of Conccssioii, as rccitcd
above. The Company is noiv denied recourse to the tribunal to
which it is entitled under its contract.
Being naturally concerned with the situation in which its national
found itself, the Government of the French Republic has on several
occasions reminded the Lebanese Government of its obligations
under the Agreement of January 24th, 1948. Representations
were made through diplornatic channels with a view to avoiding
a serious dispute between the Government of the French Republic
and the Gover~iment of the Lebanese Republic, but these repre-
sentations were of no avail (memorandum handed hy the French
Ambassador to Lebanon on March ~Sth, 1953, notes frorn the EI~-
bassy of March zxst and March 24th, 1953 ,otes from the Ministry
for Foreign Affairs of the French Republic handed to the Lebanese
Embassy in Pans on AIarch 24th, 1953, and May 16th, 1953).
The Government of the French Republic has decided tosupport
the SociétéÉlectricité de Beyrouth in the defence of its riglits as a
concessionnaire in Lebanon, rights which have bcen formally
recognized in international treatiesconcluded hy that State, aiid
to secure respect by the Lebanese Government of its obligations
towards the Government of the French Republic iindcrtaken in the
Agreement of January a&, 1948. The brcachcs of the concessionary
contract of the SociétéÉlectricité de Beyrouth and the deriial

of justice invoIved in the Lebanese Government's refusa1 to accept
the arbitration provided for by the General Conditions arc, by
reason of the treaty obligations cited in this Application, viola-
tions of international law for whichhe Government of the Lebancsc
Republic must bear responsibility. The Governmcnt of the French
Republic asks tliat the rules of internationIaw tliat are applicable
tothe situation of its national,asset out above, shouldbe respectecl,
and asks for adequate reparation for thc failure to observe these
rules.
Having vainly resorted to diplornatic negotiations in respect of al1
the foregoing points, the Government of the French liepublic
has decided to bring its dispute with theGovcrnmcnt nf the Leban-
ese Republic tothe International Court of Justice.
Accordingly, and subject to the subsecluent presentation to the
Court of a Memonal, Counter-hlernorial and, in general, of any
cvidence or argument, and subject to any subsequent reclueçt for
the indication of provisional measures of protection in accordance
with Article 41 of the Statute of the Court, APPLIC.4TIOS INSTlTUTING PROCEEDINGS (AUG. 1953) 15

To take note that forthe purposeof ail notifications and communi-

cations relating to the present case, the Agent of the Government
of the French Republic selects for his address for service the French
Embassy at The Hague ;
To notify the present Application, in accordance with Article 40,
paragraph 2, of the Statute of the Court, to the Government of the
Lebanese Republic ;
To adjudge and declare, whether the Governmei~tof the Lehariese
Republic appears or not, and after such time-lirnitç as the Court may
fixin the absence of an agrccrneiit betxveenthe Parties :

That the alterations of the situation of the SociétéÉlectricité
de Beyrouth made unilaterally by the Lebanese Goverilment are
contraiy to the undertaking givcn inthe Agreement of January 24th,
1948, between France and Lebanon ;
That the Lebanese Government has accordingly failed to carry
out the obligation to negotiate with the concessionary Cornpany
which it assumed under the Agreement of January zqth, 1948 ;

That the Lebanese Government is under an obligation to enter
into negotiations with the Société Électricité de Beyrouth in respect
of any modifications of its situation and to make good the damage
suffered until the date of the Court's decision as the result of the
rneasures which have prevented the SociétéÉlectricité de Beyrouth
from operating according to the rulcs which the Lebaiiese Govern-
ment was under an obligation to observe.

The Ageiit of the Goverilment of
the French Republic,
(Signed) André GROS.

Signature cert~ed :
[Seal of the Ministry

for Foreign Affairs
and illegible signature.]

Bilingual Content

COURINTERNATIONALDE JUSTICE

MÉMOIRES, PLAIDOIRIES ET DOCUMENTS

AFFAIRE DE LA SOCIÉTÉ

«ÉLECTRICITÉ DE BEYROUTH >>
(FRANCEcLIBAN)

INTERNATIONALCOUROFJUSTICE

PLEADINGS,ORAI,ARGUMENTS,DOCUMENTS

"ÉLECTRICITÉ DE BEYROUTH"
COMPANY CASE

(FRANCv.LEBANON)Tous droits réservés par la
Cour internationale de Justice

Al1 rights reserved by the
International Court of Justice Le présent volume doit être cité comme suit:
qiC. 1. J.hlémoires, Agaire de la Société « Électricitde BeyrozcfhB

(France c.Liban) 11

This volume should he cluoted as:

"I.C. J. PEeadzrzgs,"Élec~ricitéde Beyrottlh" Company case
(France 17.Lebanon)"

Na de vente:

Sales numberAFFAIRE DE LA SOCIÉTÉ iÉLECTRICITI? DE BEYROUTH »

(FRANCE c.I.IRAN)

"ELECTRICITI D?E BEYROUTHJJ COR,1I"ANYCASE
(FRAYCE v. LEBANON) COUR IXTE-.ATIONALE DE JUSTICE

MÉMOIRES, PLAIDOIRIES ET DOCUMENTS

AFFAIRE DE LA SOCIETE

(ELECTRICITÉ DE BEYROUTH »
(FRANCE c.LIBAN) INTERNAT1,ONAL COURT OF JUSTICE
--

PLEADINGS, ORALARGUMENTS, DOCUMENTS

"ÉLECTRICISE DE BEYROUTH"

COMPANY CASE
(FRANCEv. T,F,BANON) PREMIÈ~IEPARTIE

-

REQUÊTE INTRODUCTIVE D'INSTANCE
ET PIECES DE LA PROCÉDURE &RITE

PART I

APPLICATION INSTITUTING PROCEEDINGS,

AND PLEADINGSIII. - REQUÊTE INTRODUCTIVE D'INSTANCE AU NOM
DU GOUVERNEhlENT DE LA4 RÉPUBLIQUE FRA4NCAISE

Août I953!
A filonsieur le Président,
A Rlessicursles Juges de la Cour internationale de Justice, i

Le soussigné,dûtnent autorisépar le Gouvernement de la Réyju-
blique française, élisantdomicile au siègede l'ambassade de Fralce
à La Haye,
,
Vu l'article 36, alinéI,du Statut de la Cour, I

Vu l'article23 de l'accord du 24 janvier 1948 entre le Gouqer-
nement de la République française et le Gouvernement de la Réeu-
blique 1ibanaise,

Vu l'article 40, alinéx,du Statut de la Cour,

A l'honneur de vous adresser la requêtesuivante :

Le 24 janvier 1948, le Gouvernement de la République fraiiç+e
et le Gouvernement de la République libanaise ont conclu un accord
afin d'aménager l'accord conclu entre eux le 25 janvier 1944;et
dénoncépar le Gouvernement français, et de régler à la fois l'en-
semble des problèmes financiers résultant de la liquidation du passé
et leurs relations monétaires et financièresour l'avenir. L'échange
des ratifications ayant eu lieu le15 février1949 ,'accord est entré
en vigueur le 16 février 1949 (JournaZ o@cielde la KépztbZiQz~e
française, 14-15 mars 1949, p.2651).
1

L'article 23 de ce traité déclar:i<Les H. P. C. conviennent Que
les différendsque pourrait soulever l'application du présent accprd
ou de ses annexes seront, à la requête de la partie intéressée,
soumis à l'arbitrage dc la Cour de Justice internationale1) i
1
L'accord du 24 janvier 1948 comporte, parmi les obligatibns
assumées par chacune des Parties contractantes, un engagement
du Gouvernement libanais inscrit dans la lettre annexe no 11 à
l'accord, relativement aux concessions des sociétés françaisesou à
capital français ail Liban: I

1
iiLe Gouvernement libanais considérant qu'en raison dd la
fin du mandat et de la proclamation de l'indépendance liba-
naise, il peut: p avoir intéàêapporter certains aménagements
ailx actes et annexes qui régissent les concessions des sociétés III.-APPLICATION INSTITUTING PROCEEDINGS
ON BEHALF OF THE GOVEllISi\IEWT 017 THE

FRENCH REPUBLIC
f Translation by theRegistryj
August 1953.
To the President,
And Members of the Iriternational Court of justice,

1, the undersigned, duiy authorized by the Government of the

French Republic, selecting as address for service the French
Embassy at The Hague,
Having regard to Article 36,paragraph I, of the Statute of the
Court,
Having regard to Article 23 of the Agreement of January qth,
1948, between the Governrnent of the French Reyublic and the

Government of the Lebanese Republic,
Having regard to Article 40, paragraph I, of the Statute of the
Court,
Have the honour to address to you the following Application :

On January qth, 1948, the Gover~imcnt of the French Republic
and the Government of the liepublic of Lebanoii coiicluded an
Agreement for the purpose of inodifying the Agreement which had
been concluded between them on January zgth, 1944, and which
had been denounced by the French Government, and for the purpose
of settling al1the fiilancial problems resulting from the licliiidation
of the past and, at the same tirne, their monetary ancl financial
relations for the future. Ratifications having been cuchanged on
February rgth, 1949, the -4greement entered into force011February
16th, 1949 (Joztnial oficiede la Républiqîce/rangnise,bIarch 14th-

15th 1949, 1). 2651).
Article 23 of this Treaty provide: "The WighCoiitracting Parties
agree that any disputes wl-iichniay arise from the applicatiori of the
present Agreement or of its Annexes shall, nt the reqiiest of
the Party concerned, be submitted for arbitratioii 11ythe Court
of International Justice."
The Agreement of ljanuary 24th, 1948, includes, among the
obligations assumed by cacli of the Contracting Parties, an under-
taking by the LebaneseGovernment, contained in the letter alipear-
. ing as Annex No. 12 to tlic Agreement, trith repxrd to conces-
-ioriç of French cornpanies and companies witli French capital in
Lebanon

"The Lebanese Govern~neilt, considering that by reasori of
the termiiiation of the Mandate and the proclamation of
Lebanese independcnce, it may be desirable to effcct certain .
modifications in thc iiistruments and annexcs governiiig the françaises ou à capital français exerçant sur son territoire,
ainsi qu'aux textes qui en précisent les modalités d'applica-
tion,se propose d'entamer des conversations avec chacune de
ces sociétésdans l'esprit des pourparlers déjà engagés à cet

effet.
Ces con\~ersations auront polir objet de rechercher de façon
contractuelle et dans le cadre de la législation actuellement
esistante iine solution de nature à permettre au Gouverne-
ment libanais de soiimettre à l'approbation du Parlement les
aménagements dont il s'agit.

jusqu'à la mise en application de ces aménagements, les
actes, annexes et textes qui régissaient les concessions de
ces sociétés au lCrjanvier 1944 clemeiireront en vigueur:

Le présent modzts vive+zdi est lié aux diverses dispositions
de l'accord en date de cc jour. ii

C'est à Ia çuitc de violations des engagements pris par' le
Goirirernement libanais son égard dans cette anncxe 12 que' le
Gouvernement de la Répiil-iliquefra~iqaise est amené, en se fon-
dant sur l'article 23 du traité du 24 janvier 1948, à saisir la Cour
internationale de Justice de la présente requête.
La SociétéElcctricité dc Beyrouth est une sociétéanonyme
franqaise dont le siège social est & Paris,7,boulevard de la Made-
leine, constituée le 3 janvier 1923pour une durée de gg ans, et

dont l'objet social est l'étude, l'établissement et l'exploitation
de services publics tcls (lue les transports, la distribution d'éclai-
rage et force motrice. La Sociétéest titulaire de cinq concessions
au Liban dont quatre intéressent la présente requête :

x) Concession pour la distribution de l'énergie électrique pour
tous usages dans la ville de Beyrouth et sa banlieue.
2) Concession pour la construction et l'exploitation d'un réseau
de distribution d'énergie électriquehaute tension dans la ville
de Beyrouth et un périmètre autour de Beyrouth.
3) Concession pour I'établissement et l'exploitation d'une usine
hydro-électrique sur le Itahr-el-Safa.

4) Concession pour la distribi~tion dc l'énergie électrique dans
certains ~~illagesdu Liban.

Ces diverses concessions rentrent daiis la catégorie d'actes visés
par la lettre annexe no 12 à l'accord franco-libanais du 24 janvier '
1948, texte cite ci-dessus, qui prkvoit que tous aménagements
à apporter aux concessionç des sociétésfrançaises ou à capitaux
français devront se faire par la voie contractuclle et que,ijusqu'lt
la mise en application de ces aménagements, lcs actes annexes, et APP1,ICATIOS ISÇTITUTINC PROCITEDISGÇ (AUC. 1953) 10

concessions of French companies and companies witIi French
capital operating upon its territory, and.in the tests defining
the manner in which they should bc applied, proposes to
initiate conversations with each of the companies concerned in
the spirit of the discussions already held to this end.
The purpose of these conversations will be to arrive at a
solution, in a contractual mariner and within the framework
of the esisting law, such as to eriablc the Lehanese Govern-
incnt to submit the modifications in qtiestiori for the approvaI
of Parliamcnt.

Until the putting into cffect of thesc ~ncidilicatioris, the
instruments, annexes and texts which governed the conces-
sions of these companies on January ~st, 1944, will remain
in force.

The present nzod~cs vivendi is to be rcad with the various
provisions of the Agreement of to-day's date l."

As the result of breaches of the undertakings subscribed to by the
Lebanese Government in favour of the Government of the French
Republic, in the said Annex No. 12, the latter Government, on the
hasis of Article 23 of the Treaty of January 24th, 1948, is led to
scise the International Court of Justice of the yresent Application.
The SociétéElectricité de Beyrouth isa Frerich limited Company
with itsHead Office at 7, Boulevard de la Madeleine in Paris.
It was incorporated on January 3rd, 1923, for a period of 99 years,
and its objects are the study, establishment and exploitation of

public scrvices such as transport, lighting and yower. The Company
is tlie holder of five concessions in Lebanon, of which the yresent
Application is concerned with four :

(1) Concession for the distribution of clectrical energy for al1
purposes in the town of Beirut and its surrounding district.
(2) Concession for the construction and exploitation of high tension
electrical energy mains for the town of Beirut and within a
perimeter around Beirut.
(3) Concession for the establishment and esploitation of a hydro-

electric factory on the Xahr-El-Safa.
(4) Concession for the distribution of electrical energy in certain
villages of Lebanon.

These various concessions fa11within the catcgory of instruments
refer--- to in the letter. Annex No. 12. to the Franco-Lebanese
Agreement of January ~4th~1948, citkd alovc, which provides that
any modifications to be effected in the concessioris of French com-
panies and companies with French capital should be effected in a
contractual manner and that "until the putting iiito effect of these

l Translationby the Registry.textes qui rkgissaient les concessions de ces sociétésau janvier
1944 demeureront en 'gueur il.

,4u lieu de procéder, comme il y est tenu par l'accord du 24 jan-

vier 1948, à l'aménagement par la voie contractuelle des quatre
concessions de la SociétéÉlectricité de Beyrouth, le Gouvernement
libanais a procédéde manière unilatérale et décidé, commeterme
d'une série de mesures contraires aux cahiers des charges des
concessions, la mise en régieprovisoire par des arrêtésdes 19 mars
ct 4 avril 1953 des concessions d'électricité dela Société.

L'histoire des violations par le Liban de l'accord franco-libanbis
du 24 janvier 1948 remonte à la fin de l'année 1951. A cette
époque, sous certaines pressions, une campagne fut déclenchée
pour obtenir la réduction des tarifs de vente de l'électricité,allant
jusqu'à un refus collectif des usagers de payer les taxes cor-
respondant à leur consommation d'électricité : le mouvement

était d'autant moins compréhensible que la Sociétéétait loin
d'appliquer les tarifs maxima autorisés par les cahiers des charges
de ses concessions, que ses tarifs étaient inférieurs à ceux :de
nombreuses villes d'importance comparable et que, au surplus,
Ics tarifs généraux d'application avaient étéformellement approu-
vés par l'autorité concédante et homologués par le service ,de
coiitrôle en 1943.
D'après le cahier des charges du 4 juin 1925, article r3 (conees-
sion I), la Sociétéreste libre de relever certains prix rédunits
qu'elle consent à des catégories spécialesd'usagers, à condition
de rester dansla limite des tarifs générauxhomologués.Cependant,
alors que la liberté pour la Société de rclevcr les prix de vente
réduits n'avait jamais étécontestée par l'autorité concédarite,
le service du contrôle s'y opposa pour la première fois en 1950.

La Société offritde faire trancher le litige, par les voies de droit
prévues au cahier des charges, sans recevoir de réponse. Par
contre, le Gouvernement libanais laissa s'accréditer l'opiiiion que
la Sociétécontrevenait à ses actes concessionnels. Aussi la cam-
pagne publique contre les tarifs d'électricitése développa jusqu'à
une invitation au public de refuser le paiement de l'électricité.
l
I
Il dépendait du Gouvernement libanais de mettre son con4es-
sionnaire à mêmede résister à cette pression; loin de le faire, le
Gouvernement libanais ne permit pas à la Sociétéd'user de son
droit élémentairede couper le courant en cas de non-paieme,nt.
La grève des paiements prit naturellement de l'ampleur, et dès
!
janvier 1952, 50% des quittances ne sont pas payées.
La Sociétéavait, par lettres des 4 février et 4 mars 1952, iris-
acte du refus du Gouvernement libanais de rétablir l'ordre: et
de mettre son concessionnaire A mêmede remplir son service: et. APPLICrZTIOW INSTITUTING PROCEEDINGS (AUG. 1953) II
modifications, the instruments, annexes and texts which governed
the concessio~is of these companies on January rst,1944, will
remain in force".
Instead of seeking to secure modifications of the four concessions
of the SociétéÉlectricité de Beyrouth in a contractual manner,

as it was bound to do by the terms of the Agreement of Janu-
ary zqth, 1948, the Lebanese Government acted unilaterally and,
as a final stepin a series of measures contrary to the General Con-
ditions [Cahiers des Charges] of the concessions, dccidcd to put the
Company's electricity concessions under provisional State control.
by decrees of March 19th and April 4th, 1953.
The history of the Lebanese breaches of the Franco-Lebanese
Agreement of January 24th, 1948,goes back to the eiid of the year
1951. At that time, as the result of certain pressure, a campaign
was started with the object of securing a reduction of the charges
for electricity, which went as far as a collective refusal of consumers
to pay the ratcs corresponding ta their consumytion of electricity :
this movement was al1 the more difficult to understaiid in that
the Company \irasfar from applying the maximum rates authorized
by the General Conditions of its concessions, that its rates were
lower than those of many towns of comparable size and that,
furthcrmore, the general rates applied had been formally approvcd

by the authority granting the concession, and confirmed by the
Servicede contrôle in 1943.
According to the General Conditions of June 4th, 1925, Article 13
(Co~icession I), the Company retained liberty to raise certain
reduced charges which it allowed to certain spccial catcgorics of
consumcrs, provided that the charges did not exceed thc general
rates which had been confirmed. However, whereas the Company's
right to raise the reduced rates had never been chsllcngcd by the
authority granting the concessions, the Service decontrôleoihjected
to it for the first time i1950 T.he Company offered to allow the
dispute to be settledby the legal means provided for in tlie (;encra1
Conditions, but its offer remained unanswered. The 1,chanesc Gov-
qrnment, on the other hand, allowed the opinion to hccorne currcnt
that the Company was inbreach of the concessioriary instruments.
Accordingly, the public campaign against the elcctricity rates
developed into an invitation to the general public to refiise topay
for electricity.

It was for the Lebanese Government to put its concessionnaire
in a position to resist this pressurear from doing so,,the Lebanese
Government refused to permit the Company to exerciçcits clernen-
tary right of cutting off the current in cases of non-pay~ncnt. The
consumers' strike naturally developed and by January 1952, jOO/o
of the accounts were not paid.
Ry lettcrs of February 4th and March 4th, 1952, the Company
took note of the refusa1 of the Lebanese Government to restore
order and to put its concessionnaire in a position to perform theindiqué que, si elle devait s'incliner devant des réductions de
tarifs imposées d'autorité, elle réclamerait les compensations
dues pour ces atteintes à ses droits.
Le Gouvernement libanais décida de fairc procéderà une enquête
par deux experts hollandais. Après avoir reconnu que « Ics tarifs
sont baçéssur des principes économiquessains et peuvcnt satisfaire
aux besoins de la clientèleilles experts préconisèrent,pour apaiser
les troubles, une légèreréduction pour les seuls usagers dont la
consommation ne dépassait pas zo kwh. par mois, « sans changer

les autres tarifs1)Mais ces recommandations ne furent pas suivies
par le Gouvernement libanais, qui accepta les revendications des
comités de grève des usagers et promulgua un décret no 8904 du
IO juillet1952, complétépar des décrets no 9228 du 19 août 1952
et no 9379 du 5 septembre 1952.
Le décret no 8904 abaisse tous les tarifs généraus d'applica-
tion de 21 piastres libanaises à 16,jo pour l'éclairage, de 13,z5 à
Io,Zj pour la force motrice basse tension etde I3,25 à 8,25 pour
la force motrice haute tension ; les prix de vente réduits pour
certains usages domestiques passaient pour la dernière tranche de
S piastres a6,jo en faisant de ce prix un véritable tarif général.Le

nombre des bénéficiairesdes prix réduits passait de 8.000 48.000 ; .
la réduction avait, cn plus, effet rétroactif auxcr janvier 1952.
Ces mesures discrétionnaires rompaient l'équilibre fillancier de
la concession et, si le Gouvernement libanais les avait jugées
nécessairespour rétablir l'ordre, elles devaient entraîner i~idem'ni-
sation. les négociations entamées par la Sociétépour obtc'nir
le rétablissement de l'équilibre financier de ses concessions nc
purent aboutir. Les nouveaux décrets no gzzS du rg août 1952
et no 9379 du 5 septembre 1932 du Gouvernement libanais fixant
les nouveaux tarifs pour les industriels soulèvent de nouvelles
protestations devant lesquelles le Gouvernement cède et enjoint

à la Sociétéde ne pas percevoir les tarifs réduits qu'il vient lui-
même d'édicter, mais seulement un acompte de 5 piastres par
kwh. (sur la quantité de consommation ancienne et future jusqu'à
ce que le Conseil des Ministres décidede ce qui convient de fairer
(lettre du ministre des Travaux publics à la Sociéténo 2380 du
17 novembre 1952).

En réponse aux réclamations de la Société, Ic ministre des
Travaux publics écrit, le I~~ décembre 1952 : (Eii ce qui concerne
vos deux lettres des 22 juillet et29 octobre 19j2, les questions
qui y sont soulevéessont actuellement discutées par le Conseildes

Ministres qui vous invitera prochainement à entamer des iiégocia-
tions avec lui pour fixer les nouvelles bases qui feront l'objet d'un
accord avec votre Sociétéet engloberont toutes les questions qui
sont encore en suspens et qui concernent le financement des nou-
veaux moyens de production de l'énergieélectrique, les tarifs de
vente de l'électricitéet la question de l'esploitationi) AP1~I.IChTIOS ISSTITUTISG PROCEEDINGS (AUG. lgj3)
12
service in cluestion and it indicated that if it were obliged to accept
the reductions of the rates imposed by authority, it woulcl claim
the reparation due forthese infringements of its rights.
The Lebanese Governrnent decided to request two Dutch experts
to undertake an enquiry. After recognizing that "the rates are

based on sound economic pnnciples and can satisfy the nccds of
the consumers", the experts recommended, in order to restore calm,
a slight reduction for those consumers only who did not use inore
than 20 kurh. yer month, "without changing the other rates".
But these recomrnendations were not carried out by the Lebanese
Government, which complied with the demands of the Consumers'
Strike Cornmittees and issued Decrec No. 8904 on July ~oth, 1952,
suppierne~ited by Decrees No. gzzS of August qth, 1952, and
No. 9379 of Scptember jth, 1952.
DecreeNo.8904lowersal1applicablegcneral rates from 21 Lebanesc
piastres to 16.50 for lighting, from 13.25 to 10.25 for low tension
power and from 13.25 to 8.25 for high tension power; the reduced
rates for certain domestic uses were altered for al1 consumption
above a certain Ievel from 8 piastres to 6.50, this rate beconiing a

true flat rate.The number of consurnersbenefitting from the reduced
prices \vas increased from 8000 to 48,000 ;furtherrnore, the reduc-
tion !vas made retroactive to January rst, 1952.

These arbitrary rneasures upset the financial equilibrium of the
concession and, if the Lebanese Government had deemed them
neccssary in order to restore ordcr, they ought to have involved
compensation. But the negotiations entered into by the Company
to obtsin the re-establishment of the financial equilibrium of its
concessions did not succeed. The new decrees, No. 9228 of August
~gth, 1952, and No. 9379 of September 5th, 1952, issued by the
Lebanese Government, fixing new rates for industrial consumers.
gave rise to fresh protests in face of lvhich the Government yielded
and enjoined the Company not to collect the reduced rates which it

itself had just decreed but only a payment on account of 5 pias-
tres per kwh, "on the amount consumed in the past and in the
future until the Council of Ministers should have decidecl what
ought to be done" (letter from the Minister of Public Works to the
Company, No. 2380, of November 17th, 1952).
In reply to the Company's demands, the Minister of Public
Works wrote a5 follows on Deccmber xst, 1952 :"As regards your
two letters of July 2znd and Oclober zgth, 1952, the questions
raised therein are at present being disc~zssedby the Council of
Ministers wliich \vil1shortly invite you to enter into negotiations
with it in order to fix new bases which will be the subject of an
agreement with your Company aiid will include al1 questions
still outstanding concerning the financing of new means for pro-
ducing electrical power, electricity rates and the question of
exploitation."

2 Ainsi, à la date du 1"'décembre 1952,le Gouvernement libanais
reconnaissait encore l'obligationue lui fait Ia lettre annexe n12
à l'accord du 24 janvier 1948 de négocier avec la Sociététous
aménagements qu'il désire apporter aux concessions. Dans cette
mêmelettre du IC'décembre 1952 ,e Gouvernement libanais rccon-
naissait d'ailleurs le méride l'effort financieetconstructif de la
Sociétéau cours de l'année 1952 M.ais de ces témoignagesaux actes
le pas ne fut pas franchi, et la Sociétédut, le 23 février 1953.
attirer l'attention du Gouvernement libanais sur la gravité de la
situation, les décrets n'étant pas respectés par les industriels, les
administrations publiques s'abstenant depuis plus d'unan d'acquit-

ter le prixde leur consommatior~ de courant. Sanç réponse utile du
Gouvernement, la Société,par lettre du z mars ~953, de~nandaen
application de ses cahiers des charges l'arbitrage des questions
faisant l'objet du différendavec le Gouvernement libanais {arti39e
concessioii du 4 juin 1925 ,rticle 32 concession du 26 août 1925,
article 28 avenant du 23 mai 1929). Chacun de ces cahiers des
charges prévoit que le concessionnaire a le droit de çoiimettre les
contestations avec l'administration au sujet de l'exécution et de
l'interprétation des clauses du cahier des chargàsune commission
d'arbitrage.

Le r9 mars 1953, le Gouvernemeiit libaiiais prononce par arrEtC
la mise en régieprovisoire, aux frais, sous la responsabilité et pour
le compte de la Société,de la concession de production de l'énergie
électrique de Beyrouth et désigne deus séquestres. Ceux-ci s'em-
parèrent des bureaux et des archives de la Sociétéet expulsèrent,
par la force, de son bureau le reprhsentant de la Sociétéà Bey-
routh.
Le 4 avril1953 un nouvel arrêtéétend la mise sous séquestre à
toutes les concessions d'électricitéde la. Société.
La Sociétéa protesté contre cette mise en régieprovisoire décidée
en violation des dispositio~is des cahiers des charges ct renouvelé
sa demande d'arbitrage. 11ne lui futjamais répondu. Toutes les

dificultés de la Société,retracéedans la présente requête,y com-
pris la mise en régieprovisoire, concernent l'exécutiondes cahiers
des charges et I'interprGtation des droits du concessionnaire et rclè-
vent de l'arbitrage.La réduction autoritaire par le Gouvernement
libanais des tarifs est une violation des droits reconnusa Société
par les cahiers des charges. Il n'est pas de pays où le droit du concé-
dant de mudifier dans l'intérêtgénkralles conditions d'exploita-
tion d'un service public ne soit assorti d'une obligation d'indemniser
le concessiontiaire du préjudice résultant des modifications aux
clauses financières .du contrat de concession. La jurisprudence
administrative au Liban en cette matière est la mêmequc celle
du Conseil d'État français. APPLICATION INSTITUTING PROCEEDINGS (AUG. 1gj3) 13
Thus, on December ~st, 1952, the Lebanese Governrnent still
recognized itç obligation under the letter annexed as No. xz to
the Agreement of January qth, 1948, to negotiate with the Com-
pany in respect of any modifications iwished to make in the con-

cessions. In the same letter of Decernber ~st1952, the Lebanese
Government also recognized the merit of the financial and con-
structional record of the Company during the year 1952. But
these words were not translated into action, and on February
23rd, 1953, the Company was obliged to clraw the attention of
the Lebanese Government to the gravity of the situation since
the decrees had not been respected by industrialists ancl since
public offices for more than a year had refrained from paying for
the current they had consiimed. Having received no practical
reply from the Government, the Company, by a letter dated hfarch
and, 1953, requested arbitration, in piirsuance of its General
Conditions, of the questions which were the subject of clispute
with the Lebanesc Government (Article 39, Concession of June
4th, 1925 ; Article 32, Concession of August 26th, 1925 ;Article
28, additional clause, oMay 23rd, 1929) .he General Conditions
in each case provide that the concessionnaire is entitled to refer
its disputes with the Administration concerning the execution or
interpretation of the clauses of the General Conditions to an
arbitration commission.
On March ~gth, 1953 ,he Lcbanese Government issued a Decree
enacting that the concession for the productionof electrical power
in Beirut should be brought provisionally under State control,
at the expense, under the responsibility and on behalf of the

Company, and appointing two receivers. The Iatter took possession
of the offices and archives of the Company and expelIed thc Com-
pany's respresentative in Beirut from his office by force.
On April 4th, 1953 , further Decree extended the receivership
to al1 the Company's electricity concessions.
The Company -protested against this provisional bringing under
State control, which had been dccided upon in violation of the
provisions of the General Conditions and renewcd its request
for arbitration. No reply was ever received. Al1 the Company's
dificulties, which have been rccited in this Application, including
the provisional placing under State control, concern the applica-
tion of the General Conditions and the interprctation of the
rights of the concessionnaire and arc a proper subject-matter for
arbitration. The arbitrary reduction of the rates by the Lebanese
Government is a violation of the rights which the Company holds
under the General Conditions. There exists no couritry where the
right of the authority granting the coricession to modify, in the
general interest, the conditions of exploitation of a public utility
is not accompanied by an obligation to cornpeiisate the conces-
sionnaire for the damage resulting from modifications of the
financial clauses of a concessionary contract. Administrative case .Avec le refus du Gouvernement libanais d'accepter l'arbitrage

auquel il est tenu par les cahiers des charges, nous trouvons une
dernière violation des engagements assumés par le Gouvernernent
libanais dans la lettreanncxc no 12 à l'accord du 24 janvier 1948,
violation qui couronne I'cnsemble de mesures contraires aux actes
de concession énumérCes ci-dessus. La Sociétése voit dénier Ie juge
auquel lui donne droit son contrat.
Naturellement préoccupéde la situation où se trouvait rdduit
son ressortissant, le Gouver~icment de la République française a
rappelé à diverses reprises au Gouverneme~ltlibanais les obligations
qui incombent à ce dernier du fait de l'accord du 24 janvier 1948.
Des démarches ont étéfaites par la voie diplomatique pour tcnter
d'éviterqu'un différendsérieus ne soit crééentre Ie Gouvcme~nent
de la République française ct le Gouvernement de la liépublique
libanaise, mais ces clémarcliessont demeurées sans succès (mémo-
randum remis par l'ambassadeur de France au Liban le 18 mars
.Igj3, notes de l'ambassade en date du 21mars et du zq mars 1953,
notes du ministère des Affaires étrangèresdc laRépublique fran-
çaise remises à l'ambassade du Liban à Paris le 24 mars 1953 et
le76 mai 1953).

Le Gouvernement de la likpublique française a décidéd'appuyer
la Sociétéfilectricit~i dc Beyrouth dans la défensede ses droits. de

concessionnaire au Liban, formelleme retonnus dans (les traités
internationaux conclus par cet Etat,et d'obtenir du Gouvernement
libanais le respect des engagements pris vis-à-vis du Gouvernement
de Ia République française dans l'accord du 24 janvier 1948. Les
atteintes au contrat dc coriccssion de la SociétéÉlectricité de
Beyrouth et lc dénide justice qui résultedu refus du Gouverncment
du Liban d'accepter l'arbitrage prévu par les cahiers des charges
sont, en raison des engagements conventionnels citésdans la pré-
sente requête,des violations du droit international dont le Gouver-
nement de la République libanaise doit supporter la responsabilité,
Le Gouvernement de la République française demande le respect
des règles du droit internationalapplicables à la situation de son
ressortissant telle qu'elle été exposée et la réparation dans les
formes adéquates des marirluements au respect de ces règles.:

Ayant vainemciit eu recours à la négociation diplomatique sur
tous les points précédents, le Gouvernement de la République
française a décidéde porter soi1différendavec le Gouverncment de
la République libanaise devant la Cour internationale de Justice.
En conséquence. etsous réserve detous mémoire,contre-mémoire
et, en général,de tous moyens et preuves à présenter ultérieurement
àla Cour, sous réservcd'une demande ultérieure de mesures conser-
vatoires conformémeiit à l'article 41 du Statut de la Cour, APPLICATION IMSTITUTING PROCEEDIXGS (AUG. 1953) 14
law in Lebanon on the subject is the samc as that of the :French
Conseil d'État.
The refusal of the Lebanese Government to accept arbitration,
as it is bound to do under the General Conclitions, constitutes a
further violation of the obligations it assumed in lettcr No. rz
annexed tothe Agreement of January qth, 1948 ,nd this violation
constitutes a culminating point of al1 the measures wvhichit has

taken in contravention of the instruments of Conccssioii, as rccitcd
above. The Company is noiv denied recourse to the tribunal to
which it is entitled under its contract.
Being naturally concerned with the situation in which its national
found itself, the Government of the French Republic has on several
occasions reminded the Lebanese Government of its obligations
under the Agreement of January 24th, 1948. Representations
were made through diplornatic channels with a view to avoiding
a serious dispute between the Government of the French Republic
and the Gover~iment of the Lebanese Republic, but these repre-
sentations were of no avail (memorandum handed hy the French
Ambassador to Lebanon on March ~Sth, 1953, notes frorn the EI~-
bassy of March zxst and March 24th, 1953 ,otes from the Ministry
for Foreign Affairs of the French Republic handed to the Lebanese
Embassy in Pans on AIarch 24th, 1953, and May 16th, 1953).
The Government of the French Republic has decided tosupport
the SociétéÉlectricité de Beyrouth in the defence of its riglits as a
concessionnaire in Lebanon, rights which have bcen formally
recognized in international treatiesconcluded hy that State, aiid
to secure respect by the Lebanese Government of its obligations
towards the Government of the French Republic iindcrtaken in the
Agreement of January a&, 1948. The brcachcs of the concessionary
contract of the SociétéÉlectricité de Beyrouth and the deriial

of justice invoIved in the Lebanese Government's refusa1 to accept
the arbitration provided for by the General Conditions arc, by
reason of the treaty obligations cited in this Application, viola-
tions of international law for whichhe Government of the Lebancsc
Republic must bear responsibility. The Governmcnt of the French
Republic asks tliat the rules of internationIaw tliat are applicable
tothe situation of its national,asset out above, shouldbe respectecl,
and asks for adequate reparation for thc failure to observe these
rules.
Having vainly resorted to diplornatic negotiations in respect of al1
the foregoing points, the Government of the French liepublic
has decided to bring its dispute with theGovcrnmcnt nf the Leban-
ese Republic tothe International Court of Justice.
Accordingly, and subject to the subsecluent presentation to the
Court of a Memonal, Counter-hlernorial and, in general, of any
cvidence or argument, and subject to any subsequent reclueçt for
the indication of provisional measures of protection in accordance
with Article 41 of the Statute of the Court, Donner acte à l'agent du Gouvernemeiit de.la République fran-
çaise que, pour toutes notifications et communications relatives
à la présente affaire, il Clit domicile au siège de l'ambassade de
France à La Hayc ;
Notifier la présente requête,conforménient àl'article40, alinéaz,
du Statut de la Cour, au Gouvernement dc la République liba-
naise ;
Dire et juger, tant en l'absence que présence dudit Gouveme-
ment et après tels délais que, sous réserve d'un accord entre les
Parties, il appartiendra à la Cour de fixer :

Que les modifications apportées par voie unilatérale par, le
Gouvernement libanais à la situation de la SociétéÉlectricité .de
Beyrouth sont contraires à l'engagement pris dans l'accord du
24 janvier 1948 entre la France et le Liban ;

Que le Gouvernement libanais a ainsi manqué à l'obligation
de négociation avec la Sociétéconcessionnaire assumée par lui
dans l'accord du 24 janvier 1948 ;
Qiic le Gouvernement libanais est tenu d'entrer en iiégiw:ial~on
avec la SociétéÉlectricité de Beyrouth pour tous aménagements
à la situation de celle-ci et de réparer le préjudice subi jusqu'à

la date de la decision de la Cour par les mesures qui ont emp&ché
la SociétéÉlectricité de Beyrouth de fonctionner selon les règles
que le Gouvernement libanais Ctait tenu d'observer.

L'Agent du Gouvernement
de la RCpubIique française,

(Signt?)André GROS.

Vu pour l'authenticité de la signature
[Sceau du ministère
des Affaires étrangères
et signature illisible.] APPLIC.4TIOS INSTlTUTING PROCEEDINGS (AUG. 1953) 15

To take note that forthe purposeof ail notifications and communi-

cations relating to the present case, the Agent of the Government
of the French Republic selects for his address for service the French
Embassy at The Hague ;
To notify the present Application, in accordance with Article 40,
paragraph 2, of the Statute of the Court, to the Government of the
Lebanese Republic ;
To adjudge and declare, whether the Governmei~tof the Lehariese
Republic appears or not, and after such time-lirnitç as the Court may
fixin the absence of an agrccrneiit betxveenthe Parties :

That the alterations of the situation of the SociétéÉlectricité
de Beyrouth made unilaterally by the Lebanese Goverilment are
contraiy to the undertaking givcn inthe Agreement of January 24th,
1948, between France and Lebanon ;
That the Lebanese Government has accordingly failed to carry
out the obligation to negotiate with the concessionary Cornpany
which it assumed under the Agreement of January zqth, 1948 ;

That the Lebanese Government is under an obligation to enter
into negotiations with the Société Électricité de Beyrouth in respect
of any modifications of its situation and to make good the damage
suffered until the date of the Court's decision as the result of the
rneasures which have prevented the SociétéÉlectricité de Beyrouth
from operating according to the rulcs which the Lebaiiese Govern-
ment was under an obligation to observe.

The Ageiit of the Goverilment of
the French Republic,
(Signed) André GROS.

Signature cert~ed :
[Seal of the Ministry

for Foreign Affairs
and illegible signature.]

Document file FR
Document Long Title

Application instituting proceedings

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