Separate Opinion of Judge Wellington Koo

Document Number
034-19590321-JUD-01-03-EN
Parent Document Number
034-19590321-JUD-01-00-EN
Document File
Bilingual Document File

SEPARATE OPINION OF JUDGE WELLINGTON KOO

1 agree with the conclusions of the Court in sustaining the Third
Preliminary Objection submitted by the United States and in ruling
that Switzerland's principal claim relating to the restitution of
Interhandel's claimed assets in the United States and its alternative
claim relating to the question of submission of the dispute to arbi-
tration or conciliation are inadmissible on ground of the non-ex-
haustion by Interhandel of the remedies in the United States courts.
But 1regret 1 am unable to concur in the Court's rejection of the
First Preliminary Objection raised bythe United States. 1maintain
that this Objection should have been upheld, and 1 propose to set
out the reasons for my view.

The First Preliminary Objection is based upon the condition
ratione temporis in the United States Declaration of August 26th,

Article 36, paragraph 3, of the Statute. This condition limits the

acceptance to "al1 legal disputes hereafter arising..". Thus the
date of the Declaration is the crucial date. Did the present dispute
arise before this date as claimed by the United States or after this
date as claimed by Switzerland?
Before dealing with the question, it is, however, necessary to
give a summary of the facts and situations leading to the dispute.

By an Order of February ~zth, 1942, the Secretary of the Trea-
sury ofthe United States ordered vested over goper cent ofthe shares
of the General Aniline and Film Corporation (GAF), a company
incorporated in the State of Delaware, together with a sum of
approximately $1,800,000. These assets were later vested in the
Alien Property Custodian under Orders No. 5 and No. go7 issued
by him respectively on February 24th, 1942, and February 15th,
1943. Al1 these vesting Orders were based upon the Trading with
the Enemy Act of October 6th, 1917, as amended.
GAF owns almost half of the ordinary shares of Interhandel, while
approximately 75 per cent of its own shares and al1its issued "B"
shares are said to belong to Interhandel, which is the new name for
the oldcompany I.G. Chemie (Internationale Gesellschaft für Chemi-
sche Unternehmungen Aktiengesellschaft). It should be recalled
that I.G. Chemie was a Swiss corporation founded in 1928 with its
seat in Basel, Switzerland, by I.G. Farben, a German corporation
with its seat in Frankfurt, Germany, and largely owned and
controlled by Germans. Switzerland claims that the ties between

46 the two corporations were legally and completely severed in June,
1940, after its reorganization in 1939-1940 while the United States
contends that they were not severed and that Interhandel conti-
nued to be controlled or influenced by I.G. Farben after June 1940.

It appears clear from the evidence before the Court that the
United States vested the GAF shares under the Trading with the
Enemy Act because they were German-controlled. Thus, in the
aide-mémoire of February ~zth, 1942, the same date as that of the
first vestingorder handed to the Swiss Minister in Washington by
the Secretary of State, itis stated:

"This action is being taken because, in the judgment of the
Secretary of the Treasury, these shares are actu,aliy controlled by
German interests, and because it is important that this company
be freed from German control in order that its facilities may be
effectively utilised in this country's war effort."

The United States has consistently maintained this view of the
German character of I.G. Chemie, now Interhandel, through al1
these years, and has not abandoned or modified it. Switzerland, on
the other hand, has taken the opposite view since 1945 and has not
in any way revised it.
This Swiss attitude was initially manifested as the result of the
first investigation conducted by the Swiss Compensation Office
from June 11th to July 7th, 1945. Although the letter of November

6th, 1945, from Mr. R. Hohl of the Foreign Affairs Division of the
Swiss Federal Political Department to Mr. David J. Reagan of the
United States Legation at Berne informed him of a recent decision
to have the assets of I.G. Chemie blocked for a limited time, it
pointed out at the same time that the decision was made
"in spite of the fact that this investigation did not lead to the
discovery of any document which would permit the conclusion
that I.G. Chemie is a company under the control of Germany"
and "in order to permit your authorities, if they persisted in
regarding this holding as under German influence, to fumish proof
for it". (Annex 12 to Preliminary Objections.)

Indeed, the same letter asked Mr. Reagan to
"inform your authorities of the foregoing and in doing this to
stress the point that the thorough investigations in Switzerland
have failed to establish the actual existence of a tie between
I.G. Chemie and I.G. Farben". (Ibid.)

The second investigation was made by the Swiss Compensation
Officefrom November 5th, 1945, to February z5th, 1946. The result
of this investigation, according to the Swiss Compensation Office,

47simply confirmed the result of the first investigation. From that
time on, the attitude of Switzerland on the Swiss character of Inter-
handel became clearly fixed. The subsequent correspondence be-
tween the Swiss Compensation Office and the United States re-
presentatives, particularly the letters exchanged of August ~oth,
1946, August zoth, 1946, and August zznd, 1946, and the minutes
of thr meeting between these representatives and certain members
of the Federal Council on August 15th, 1946, although the immediate
subject-matter was the question of procedure concerning the joint
investigation of the Swiss assets of Interhandel, nevertheless showed
clearly that their differences of opinion on this subject stemmed
from the basic conflict of their views as to the character of the
company. The United States representatives considered Interhandel
to be a German-controlled company and therefore stated that :

"it was intended that there be a joint investigation of I.G. Chemie
to determine the extent of German influence in which you speci-
fically would furnish us with your evidence. It is to be regretted
that Our recollections in this regard differ." (Annex 4 to Swiss
Observations and Conclusions.)
The Swiss authorities, on the other hand, were willing only to
receive and consider proofs from the United States representatives,
and refused to open Swiss files to them for examination, because
they adhered to their view that :

"it was improper for the Swiss Compensation Office to make
available to American or other foreign representatives documents
relating to a firm which, after two investigations by the Swiss
Compensation Office,had been determined to be Swissowned".

A preliminary question to consider is: what constitutes an inter-
national dispute ? According to the criterion well established by the
Court, especially in thepeace Treatiescase (I.C.J. Reports19.50 ,.74),
an international dispute will be held to exist when the two sides
,,hold clearly opposite views concerning the question". In the light

of this definition, the dispute in the present case, in my view, is a
manifest one, consisting in a sharp difference of opinion on a ques-
tion of fact, a conflict of interestsrelatingto the character of Inter-
handel, i.e whether its ties with I.G. Farben were or were not in
fact completely severed by its reorganization in 1939-1940.

The dispute arose when the Swiss Compensation Office concluded
from its two investigations undertaken between June 1945 and
February 1946 that Interhandel was no longer under German
influence from 1940 onwards and when the Swiss Government
adopted this conclusion and based its arguments on it in al1 the
discussions with the United States representatives, before the

48 United States Declaration of Acceptance of August 26th, 1946,
and even before the Washington Accord of May 25th, 1946.
The applicant State also contended (English translation of Ob-
servations, p. 7)that
"the dispute could at the earliest have ansen on October ~zth,
1948, when the Department of State finally declared that it could
not agree with the opinion of the Federal Council that the decision
of the Swiss Authority of Review of January 5th, 1948, was
binding on the United States in so far as it established, within
the meaning of the Washington Accord, that Interhandel was a
Swiss company" .

An examination of the diplomatic correspondence between the
Department of State and the Swiss Legation in Washington
discloses the fact that it was not the first time that the United
States took the position it did in the note of October ~zth, 1948,
that the decision of the Swiss Authority of Review was not binding
upon the United States, because it "was not one under the Accord".
In a memorandum to the Swiss Legation of June 18th, 1947,
regarding Interhandel it is stated:

"The question of the disposition to be made of this case is one
which under the terms of the Accord and annex thereto must be
dealt with through the Joint Commission.. ."
"During the course of the negotiations leading to the Accord of
a decision on the Interhandel case can have no effect of any settle-
ment of or decision on the vesting action by the Alien Property
Custodian of February 1942of the stock of the General Aniline and
Film Corporation. The United States Government has not changed
its views in this matter."

Again in its note of July 26th, 1948, the Department of State
says :

been informed, this Government considers the decision of the Swiss
Authority of Review as having no effect on the question of the
assets in the United States vested by this Government and claimed
by I.G. Chemie. "

In short the Swiss position is that since Article IV of the Washing-
ton Accord provides for the United States Government

"to unblock Swiss assets in the United States",

and since the Swiss Authority of Review under the Accord has
determined the Swiss character of Interhandel, its assets in GAF,
vested by the United States Government, should be unblocked.52 IKTERHANDEL (SEP-4~.OP. JUDGE WELLINGTON KOO)
On the other hand the United States has not only denied the
binding effect of the said decision of the Swiss Authority of Review

but also challenged the relevance of the Washington Accord in the
case, since in its view, the said Article IV relates only to Swiss
assets blocked in the United States and has nothing to do with
German assets vested in the Alien Property Custodian.

This confrontation of the two opposite views did not originate
with the note of the Department of State of October ~zth, 1948,
but dates back to the two decisions of the Swiss Compensation
Office given in the period of June 1945-February 1946, on the
Swiss character of Interhandel. The Swiss Authority of Review
merely reviewed the above-mentioned decisions subsequently on
appeal of Interhandel against the temporary blocking of its assets
and adopted them as the basis for its own decision.

It was the two decisions of the Swiss Office of Compensation
which marked the beginning of the attitude of the Swiss Govern-
ment as to the Swiss character of Interhandel-an attitude which
is opposed to that of the United States.
As to its position regarding the question of the relevance of the
Washington Accord to the decisions of the Swiss Compensation
Office and the Authority of Review, the Note of the Department
of State to the Swiss Minister in Washington of July 26th, 1948,
referring to its aide-mémoire of April z~st, 1948, also states:

"The Department further pointed out that this had been the
consistent view of the Government of the United States since
this understanding wasstatedto, and understood by, Swissofficials."

It is true that the Swiss Government denied that there was any
trace in the records of the negotiations which resulted inthe Wash-
ington Accord of May zjth, 1946, of declarations made by the
United States representatives, and took the position:

"At any rate, any such declarations would have no binding
effect on the signatories of the Accord bp reason of not being
mentioned in the Accord nor in its Annex, nor in the letters
exchanged the same day."
But it is equally true that the view of the United States asto the
enemy-controlled character of Interhandel, which is the core of the
dispute in the present case, has not changed in any measure from
the time of the negotiations for the Accord, in May 1946,and indeed,

as has been shown above, even from the time of the vesting of the
GAF shares in 1942, just as the Swiss Government has not mo-
dified its stand as to the Swiss or neutral character of Interhandel
from the time of the two decisions of the Swiss Compensation Office
in November 1945 and February 1946, The United States Note ofJuly 26th, 1948, only further confirmed its previous view of the

enemy-controlled character of Interhandel and did not originate
that view.
There remains one question to consider, namely, whether the
discussions between the United States representatives and the
Swiss Authorities concerning the German or Swiss character of
Interhandel are relevant to the present dispute and whether they
do not relate only to Interhandel's assets in Switzerland. In my
view their relevance is self-evident. The character of Interhandel,
whether German of Swiss, that is, whether enemy or neutral, is the
crucial issue in the present case with reference to its assets in the
United States just as it was with reference to its assets in Switzer-
land. It is on this issue that the two Partiesare in conflict from the
time when the Swiss Authorities defined their attitude on the basis
of the decision of the Swiss Compensation Office in June 1945-
February 1946, later confirmed by the Swiss Authority of Review.
Both Parties have maintained their respective positions, not only
with regard to Interhandel's assets in Switzerland but also with
full realization of the consequent effect upon Interhandel's GAF
assets in the United States. As was claimed by Swiss counsel in the

oral pleadings,
"When property belongsto Swks physical orlegalpersonswhose
Swiss character has already been confirmedin a binding and just
manner by the Authority of Reviewset up under the Washington
Accord,they must inevitably followthe fate of property unblocked
in Switzerland."
Itis clear that the real subject of the dispute before the Court is
the question of the enemy or neutral character of Interhandel and

not the restitution of its GAF assets, which is only the object ofthe
Swiss claim ; and that it arose before August 26th, 1946, the date of
the United States Declaration of Acceptance of the jurisdiction of
the Court. 1 am, therefore, of the opinion that the First Preliminary
Objection should have been sustained by the Court.

Bilingual Content

SEPARATE OPINION OF JUDGE WELLINGTON KOO

1 agree with the conclusions of the Court in sustaining the Third
Preliminary Objection submitted by the United States and in ruling
that Switzerland's principal claim relating to the restitution of
Interhandel's claimed assets in the United States and its alternative
claim relating to the question of submission of the dispute to arbi-
tration or conciliation are inadmissible on ground of the non-ex-
haustion by Interhandel of the remedies in the United States courts.
But 1regret 1 am unable to concur in the Court's rejection of the
First Preliminary Objection raised bythe United States. 1maintain
that this Objection should have been upheld, and 1 propose to set
out the reasons for my view.

The First Preliminary Objection is based upon the condition
ratione temporis in the United States Declaration of August 26th,

Article 36, paragraph 3, of the Statute. This condition limits the

acceptance to "al1 legal disputes hereafter arising..". Thus the
date of the Declaration is the crucial date. Did the present dispute
arise before this date as claimed by the United States or after this
date as claimed by Switzerland?
Before dealing with the question, it is, however, necessary to
give a summary of the facts and situations leading to the dispute.

By an Order of February ~zth, 1942, the Secretary of the Trea-
sury ofthe United States ordered vested over goper cent ofthe shares
of the General Aniline and Film Corporation (GAF), a company
incorporated in the State of Delaware, together with a sum of
approximately $1,800,000. These assets were later vested in the
Alien Property Custodian under Orders No. 5 and No. go7 issued
by him respectively on February 24th, 1942, and February 15th,
1943. Al1 these vesting Orders were based upon the Trading with
the Enemy Act of October 6th, 1917, as amended.
GAF owns almost half of the ordinary shares of Interhandel, while
approximately 75 per cent of its own shares and al1its issued "B"
shares are said to belong to Interhandel, which is the new name for
the oldcompany I.G. Chemie (Internationale Gesellschaft für Chemi-
sche Unternehmungen Aktiengesellschaft). It should be recalled
that I.G. Chemie was a Swiss corporation founded in 1928 with its
seat in Basel, Switzerland, by I.G. Farben, a German corporation
with its seat in Frankfurt, Germany, and largely owned and
controlled by Germans. Switzerland claims that the ties between

46 OPINION INDIVIDUELLE DE M. WELLINGTON KOO
[Traduction]

Je suis d'accord avec les conclusions de la Cour lorsqu'elle
retient la troisième exception préliminaire qui lui a étésoumise par
les Etats-Unis et lorsqu'elle décideque la demande principale-de la
Suisse visant la restitution des avoirs de 1'Interhandel aux Etats-
Unis et que sa demande subsidiaire ayant pour but de soumettre
le litigeà l'arbitrage ou à la conciliation sont irrecevables du fait
du non-épuisement des recours internes devant les tribunaux des
Etats-Unis par I'Interhandel. Mais je regrette de ne pouvoir me
rallier au rejet par la Cour de la première exception préliminaire
soulevéepar les Etats-Unis. Je soutiens que cette exception aurait

dû êtremaintenue et je me propose d'exposer les motifs de mon
opinion.
La première exception se fonde sur la réserve ratione temporis à
la déclaration des Etats-Unis du 26 août 1946 acceptant la juridic-
tion obligatoire de la Cour aux termes de l'article 36, paragraphe 3,
du Statut. Cette réserve limite l'acceptation à ((tous les différends
d'ordre juridique qui s'élèveront à l'avenir..)).La date de la
déclaration est donc la date critique. Le différend actuel s'est-il
élevéavant cette date, comme le prétendent les Etats-Unis ou
après cette date, comme le prétend la Suisse?
Avant d'examiner cette question, il est toutefois nécessaire de
donner un résumédes faits et des situations qui ont abouti au diffé-

rend.
Par une ordonnance du 12 février 1942, le secrétaire au Trésor
des Etats-Unis avait ordonnéla mise sous séquestre d:environ 90%
des actions de la G. A. F., société enregistréedans 1'Etat de Dela-
ware, ainsi que d'une somme d'argent d'environ $ I 800 ooo. Plus
tard, ces avoirs ont étémis sous le séquestre des biens étrangers,
par les ordonnances noS5 et 907 rendues par lui respectivement les
24 février 1942 et 15 février 1943. Toutes ces ordonnances de
séquestre se fondaient sur le Trading with the Enemy Act du 6 octo-
bre 1917 et ses amendements.
LaG. A. F. possède presque la moitié des actions ordinaires de

lJInterhandel tandis que 75% à peu près de ses propres actions et
toutes sesactions « B ))émisesappartiennent à1'Interhandel qui est
la nouvelle dénomination de l'ancienne Société 1. G. Chemie (Inter-
nationale Gesellschaftfur Chemische Unternehmungen Aktiengesell-
schaft). On se souviendra que 1'1.G. Chemie était une société suisse
fondée en 1928 avec son siège à Bâle (Suisse) par 1'1.G. Farben,
Sociétéallemande dont le siège était à Francfort (Allemagne),
appartenant principalement à des Allemands et contrôlée par eux.

46 the two corporations were legally and completely severed in June,
1940, after its reorganization in 1939-1940 while the United States
contends that they were not severed and that Interhandel conti-
nued to be controlled or influenced by I.G. Farben after June 1940.

It appears clear from the evidence before the Court that the
United States vested the GAF shares under the Trading with the
Enemy Act because they were German-controlled. Thus, in the
aide-mémoire of February ~zth, 1942, the same date as that of the
first vestingorder handed to the Swiss Minister in Washington by
the Secretary of State, itis stated:

"This action is being taken because, in the judgment of the
Secretary of the Treasury, these shares are actu,aliy controlled by
German interests, and because it is important that this company
be freed from German control in order that its facilities may be
effectively utilised in this country's war effort."

The United States has consistently maintained this view of the
German character of I.G. Chemie, now Interhandel, through al1
these years, and has not abandoned or modified it. Switzerland, on
the other hand, has taken the opposite view since 1945 and has not
in any way revised it.
This Swiss attitude was initially manifested as the result of the
first investigation conducted by the Swiss Compensation Office
from June 11th to July 7th, 1945. Although the letter of November

6th, 1945, from Mr. R. Hohl of the Foreign Affairs Division of the
Swiss Federal Political Department to Mr. David J. Reagan of the
United States Legation at Berne informed him of a recent decision
to have the assets of I.G. Chemie blocked for a limited time, it
pointed out at the same time that the decision was made
"in spite of the fact that this investigation did not lead to the
discovery of any document which would permit the conclusion
that I.G. Chemie is a company under the control of Germany"
and "in order to permit your authorities, if they persisted in
regarding this holding as under German influence, to fumish proof
for it". (Annex 12 to Preliminary Objections.)

Indeed, the same letter asked Mr. Reagan to
"inform your authorities of the foregoing and in doing this to
stress the point that the thorough investigations in Switzerland
have failed to establish the actual existence of a tie between
I.G. Chemie and I.G. Farben". (Ibid.)

The second investigation was made by the Swiss Compensation
Officefrom November 5th, 1945, to February z5th, 1946. The result
of this investigation, according to the Swiss Compensation Office,

47 INTERHANDEL (OP. INDIV. M. WELLINGTON KOO)
49
La Suisse prétend que les liens entre les deux sociétésont été
légalement et complètement rompus en juin 1940 après la réorgani-
sation en 1939-1940, tandis que les Etats-Unis soutiennent que ces
liens n'ont pas été rompus et que IlInterhandel a continué à être

sous contrôle et influence de 1'1.G. Farben après juin 1940.
Il ressort clairement des preuves soumises à la Cour que les
États-unis ont mis sousséquestre les actions de laG.A. F. en applica-
tion du Trading with the Enerny Act parce qu'elles étaient sous
contrôle allemand. C'est ainsi que l'aide-mémoire du 12 février
1942, portant la mêmedate que la première ordonnance de mise
sous séquestfe, remis au ministre de Suisse à Washington par le
secrétaire d'Etat, énonce clairement ce qui suit :

(Cette décisiona étéprise parce que, selon la manière de voir
du secrétaire au Trésor, ces titres sont effectivement contrôlés
par des intérêtsallemands et parce qu'il importe que cette société
soit libéréedu contrôle allemand, afin que les facilités dont elle
dispose au point de vue de la production puissent êtreeffective-
ment mises au service de l'effort de guerre des États-Un)).

Les États-unis ont constamment soutenu cette opinion sur le
caractère allemand de 1'1.G. Chemie, aujourd'hui Interhandel, Pen-
dant toutes les années qui se sont écouléesdepuis lors et ne l'a ni
abandonnée ni modifiée. De son côté, la Suisse, depuis 1945 a
adopté l'opinion contraire et ne l'a modifiée en aucune façon.
L'attitude suisse s'est manifestéel'origineà la suitede la première
enquêteconduite par l'Office suisse de compensation, du II juin au
7 juillet 1945. Bien que la lettre du 6 novembre 1945 adressée par
M. R. Hohl, de la division des Affaires étrangères du Département
politique fédéralsuisse à M. David J. Reagan, de la légation des
Etats-Unis à Berne, ait fait partà celui-ci d'une décisionrécente de

bloquer les avoirs de 1'1. G. Chemie pour une durée limitée, elle
signalait en mêmetemps que la décision était prise
((Malgréle fait que cette revision n'ait amenéla découverte
d'aucun document permettant de conclure quJI. G. Chemie est une
sociétécontrôlée de l'Allemagne » et «il a étédécidé récemment
que ses avoirs seraient soumis au blocage pour un temps limité
afin de permettre à vos autorités, si elles persisteàt considérer
cette holding comme étant sous influence allemande, d'en apporter
la preuve. »(Annexe 12 aux exceptions préliminaires.)

Cette mêmelettre demandait à M. Reagan:
«D'informer (ses)autorités de ce qui précède,en soulignant que
les investigations trèsapprofondiesfaites en Suissen'ont pas permis
d'établir l'existence actuelle d'un lien entre 1.G. Chemie et 1. G.
Farben. » (Ibid.)

La deuxième enquête a étéconduite par l'Office suisse de com-
pensation du 5 novembre 1945 au 25 février 1946. Le résultat de
cette enquête, d'après l'Officesuisse de compensation, a simplementsimply confirmed the result of the first investigation. From that
time on, the attitude of Switzerland on the Swiss character of Inter-
handel became clearly fixed. The subsequent correspondence be-
tween the Swiss Compensation Office and the United States re-
presentatives, particularly the letters exchanged of August ~oth,
1946, August zoth, 1946, and August zznd, 1946, and the minutes
of thr meeting between these representatives and certain members
of the Federal Council on August 15th, 1946, although the immediate
subject-matter was the question of procedure concerning the joint
investigation of the Swiss assets of Interhandel, nevertheless showed
clearly that their differences of opinion on this subject stemmed
from the basic conflict of their views as to the character of the
company. The United States representatives considered Interhandel
to be a German-controlled company and therefore stated that :

"it was intended that there be a joint investigation of I.G. Chemie
to determine the extent of German influence in which you speci-
fically would furnish us with your evidence. It is to be regretted
that Our recollections in this regard differ." (Annex 4 to Swiss
Observations and Conclusions.)
The Swiss authorities, on the other hand, were willing only to
receive and consider proofs from the United States representatives,
and refused to open Swiss files to them for examination, because
they adhered to their view that :

"it was improper for the Swiss Compensation Office to make
available to American or other foreign representatives documents
relating to a firm which, after two investigations by the Swiss
Compensation Office,had been determined to be Swissowned".

A preliminary question to consider is: what constitutes an inter-
national dispute ? According to the criterion well established by the
Court, especially in thepeace Treatiescase (I.C.J. Reports19.50 ,.74),
an international dispute will be held to exist when the two sides
,,hold clearly opposite views concerning the question". In the light

of this definition, the dispute in the present case, in my view, is a
manifest one, consisting in a sharp difference of opinion on a ques-
tion of fact, a conflict of interestsrelatingto the character of Inter-
handel, i.e whether its ties with I.G. Farben were or were not in
fact completely severed by its reorganization in 1939-1940.

The dispute arose when the Swiss Compensation Office concluded
from its two investigations undertaken between June 1945 and
February 1946 that Interhandel was no longer under German
influence from 1940 onwards and when the Swiss Government
adopted this conclusion and based its arguments on it in al1 the
discussions with the United States representatives, before the

48 INTERHANDEL (OP.INDIV. M. WELLINGTON KOO) 5"

confirmé celui de la première. A dater de ce moment, l'attitude de
la Suisse sur le caractère suisse de l1Interhandel s'est clairement
fixé L.asuite de la correspondance entre l'office suisse de compensa-
tion et les représentants des Etats-Unis, en particulier les lettres
échangées le IO août 1946, le zo août 1946 et le 22 août 1946 et les
procès-verbaux des réunions entre ces représentants et certains
membres du conseil fédéral,le 15 août 1946, montrent néanmoins

clairement, bien que l'objet immédiat en fût la question de la
procédure de l'enquête conjointe sur les avoirs suisses de l'Inter-
handel, que leurs divergences d'opinion sur ce sujet provenaient du
conflit fondamental de,leurs opinions sur le caractère de la société.
Les représentants des Etats-Unis considéraient 1'Interhandel comme
une société sous contrôle allemand et déclaraient par conséquent
que :

«Il était entendu qu'une enquêtesur 1'1.G. Chemie serait menée
en commun en vue de déterminer l'étenduede l'influenceallemande,
au cours de laquelle vous devriez fournir à titre réciproque vos
moyens de preuve. Il est regrettable que nos souvenirs diffèrent à
ce sujet.))(Annexe 4 aux observations et aux conclusions suisses.)
De leur côté, les autorités suisses étaient disposées à ne recevoir
et à ne considérer que les preuves produites par les représentants
des Etats-Unis et se refusaient à soumettre à l'examen de ceux-ci

les dossiers suisses, parce que les autorités suisses soutenaient que:
«il ne convenait pas que l'Office suisse de compensation mit
à la disposition du représentant de l'Amérique ou de représen-
tants d'autres pays étrangers, des documentsrelatifs à une société,
laquelle, après avoir fait l'objet de deux enquêtes auxquelles
avait successivement procédél'Officesuisse de compensation, avait
étéreconnue comme étant propriétésuisse B.

Préalablement, on doit examiner la question de savoir ce qui
constitue véritablement un différend international. Selon un critère
bien établi par la Cour, spécialement dans l'affaire de l'Interprétation
des traités de paix (C. I. J. Recueil 1950, p. 74), l'existence d'un
différendinternational doit êtrereconnue lorsque dans une situation
donnée, les (points de vue des deux parties sont nettement oppo-
sés ». A mon avis et d'après cette définition, le présent litige est
manifeste et il consiste en une divergence d'opinion très nette sur
une question de fait, sur un conflit d'intérêts visant le caractère de

l'Interhande1, c'est-à-dire, le point de savoir si les liens avec 1'1.G.
Farben avaient ou non étécomplètement rompus, en fait, lors de
sa réorganisation en 1939-1940.
Ce différendest néquand l'Officesuisse de compensation a conclu
d ses deux enquêtes, entreprises entre juin 1945 et février 1946,
que I'Interhandel n'était plus sous contrôle allemand depuis 1940
et quand le Gouvernement suisse a adopté cette conclusion et l'a
prise pour base de seç arguments dans toutes les discussions avec
les représentants des Etats-Unis avant la déclaration d'acceptation

48 United States Declaration of Acceptance of August 26th, 1946,
and even before the Washington Accord of May 25th, 1946.
The applicant State also contended (English translation of Ob-
servations, p. 7)that
"the dispute could at the earliest have ansen on October ~zth,
1948, when the Department of State finally declared that it could
not agree with the opinion of the Federal Council that the decision
of the Swiss Authority of Review of January 5th, 1948, was
binding on the United States in so far as it established, within
the meaning of the Washington Accord, that Interhandel was a
Swiss company" .

An examination of the diplomatic correspondence between the
Department of State and the Swiss Legation in Washington
discloses the fact that it was not the first time that the United
States took the position it did in the note of October ~zth, 1948,
that the decision of the Swiss Authority of Review was not binding
upon the United States, because it "was not one under the Accord".
In a memorandum to the Swiss Legation of June 18th, 1947,
regarding Interhandel it is stated:

"The question of the disposition to be made of this case is one
which under the terms of the Accord and annex thereto must be
dealt with through the Joint Commission.. ."
"During the course of the negotiations leading to the Accord of
a decision on the Interhandel case can have no effect of any settle-
ment of or decision on the vesting action by the Alien Property
Custodian of February 1942of the stock of the General Aniline and
Film Corporation. The United States Government has not changed
its views in this matter."

Again in its note of July 26th, 1948, the Department of State
says :

been informed, this Government considers the decision of the Swiss
Authority of Review as having no effect on the question of the
assets in the United States vested by this Government and claimed
by I.G. Chemie. "

In short the Swiss position is that since Article IV of the Washing-
ton Accord provides for the United States Government

"to unblock Swiss assets in the United States",

and since the Swiss Authority of Review under the Accord has
determined the Swiss character of Interhandel, its assets in GAF,
vested by the United States Government, should be unblocked. INTERHANDEL (OP. INDIV. M. WELLINGTON KOO)
5I
des États-unis du 26 août 1946 et mêmeavant l'Accord de Wash-
ington du 25 mai 1946.
L'Etat demandeur a soutenu également (observations et conclu-

sions suisses, p. IO) que:
«le différend aurait pu, naître au plus tôt le 12 octobre 1948,
quand le Département d'Etat déclaradéfinitivementne pas pouvoir
admettre l'opinion du Conseil fédéralque la d,écisionde l'Auto-
ritésuisse de recours du 5 janvier 1948liait les Etats-Unis, dans la
mesure où elle établissait, dans le cadre de l'Accord de lvashington,
que 1'Interhandel était une sociétésuisse».

Un examen de la correspondance diplomatique échangée entre
le Département' d'État et la légation suisse à Washington révèle

que ce n'était pas la première fois que les Etats-Unis appuyaient
la thèse présentée dans la note du 12 octobre 1948, selon laquelle
la décisio-nde l'Autorité suisse de recours n'était pas obligatoire
pour les Etats-Unis parce qu'ccelle n'avait pas étéprise en vertu de
l'Accord ». Dans un mémorandum remis à la légation suisse le
18 juin 1947 sur I'Interhandel, on trouve ce qui suit:

(cLa question relative au règlement de cette affaire est l'une de
celles qui, aux termes de l'Accord et de son annexe, doivent être
traitées par la Commission mixte. 1)
«Aucoursdes négociations qui ont abouti à l'Accord du 25 mai
1946, les représentants des Etats-Unis ont clairement indiqué
qu'une décision, intervenant dans l'affaire de l'Interhande1, ne
pourrait exercer d'effet sur un règlement quelconque ou sur une
décisionvisant la mise sous séquestre,par le gardien des biens enne
mis, en février1942,des actions de la GeneralAniline andFilm Cor-
poration. Le Gouvernement des Etats-Unis n'a pas modifiésa ma-
nière de voir en l'espi:c))

Le Département d'État déclare de nouveau dans la note du
26 juillet 1948:
(Ainsi que les représentants du Gouvernement suisse en ont
étéinformés jusqu'à présent, le Gouvernement des Etats-Unis
considère la décisionde l'Autorité suisse-de recours comme sans
effet quantà la question des avoirs aux Etats-Unis, séquestrés par
le Gouvernement des Etats-Unis et revendiquéspar 1. G. Chemie. ))

Bref, la Suisse estime, étant donné la disposition de l'article IV

de l'Accord de Washington déclarant que le Gouvernement des
Etats-Unis
«débloquera les avoirs suisses aux États-Unis »,

et, étant donné qu'en vertu de l'Accord, l'Autorité suisse de
recours a déterminé le caractère suisse de I'Interhandel, ses avoirs

dansla G. A. F., mis sous séquestre par le Gouvernement des Etats-
Unis, doivent êtredébloqués.
4952 IKTERHANDEL (SEP-4~.OP. JUDGE WELLINGTON KOO)
On the other hand the United States has not only denied the
binding effect of the said decision of the Swiss Authority of Review

but also challenged the relevance of the Washington Accord in the
case, since in its view, the said Article IV relates only to Swiss
assets blocked in the United States and has nothing to do with
German assets vested in the Alien Property Custodian.

This confrontation of the two opposite views did not originate
with the note of the Department of State of October ~zth, 1948,
but dates back to the two decisions of the Swiss Compensation
Office given in the period of June 1945-February 1946, on the
Swiss character of Interhandel. The Swiss Authority of Review
merely reviewed the above-mentioned decisions subsequently on
appeal of Interhandel against the temporary blocking of its assets
and adopted them as the basis for its own decision.

It was the two decisions of the Swiss Office of Compensation
which marked the beginning of the attitude of the Swiss Govern-
ment as to the Swiss character of Interhandel-an attitude which
is opposed to that of the United States.
As to its position regarding the question of the relevance of the
Washington Accord to the decisions of the Swiss Compensation
Office and the Authority of Review, the Note of the Department
of State to the Swiss Minister in Washington of July 26th, 1948,
referring to its aide-mémoire of April z~st, 1948, also states:

"The Department further pointed out that this had been the
consistent view of the Government of the United States since
this understanding wasstatedto, and understood by, Swissofficials."

It is true that the Swiss Government denied that there was any
trace in the records of the negotiations which resulted inthe Wash-
ington Accord of May zjth, 1946, of declarations made by the
United States representatives, and took the position:

"At any rate, any such declarations would have no binding
effect on the signatories of the Accord bp reason of not being
mentioned in the Accord nor in its Annex, nor in the letters
exchanged the same day."
But it is equally true that the view of the United States asto the
enemy-controlled character of Interhandel, which is the core of the
dispute in the present case, has not changed in any measure from
the time of the negotiations for the Accord, in May 1946,and indeed,

as has been shown above, even from the time of the vesting of the
GAF shares in 1942, just as the Swiss Government has not mo-
dified its stand as to the Swiss or neutral character of Interhandel
from the time of the two decisions of the Swiss Compensation Office
in November 1945 and February 1946, The United States Note of INTERHANDEL (OP. INDIV. M. WELLINGTON KOO) 5 2

D'autre part, les États-unis n'ont pas seulement refusé toute
validité à cette décision de l'Autorité suisse de recours, mais ils
ont aussi contesté que l'Accord de Washington eut un rapport
avec l'affaire, puisqu'à leurs yeux l'article IV dudit Accord vise
seulement les avoirs suisses bloqués aux Etats-Unis et ne touche en
rien les avoirs allemands mis sous séquestre, entre les mains de
1'Alien Property Custodian.
La confrontation de ces deux points de vue opposés n'est pas

intervenue lors de la'note du Département dJEtat du 12 octobre
1948, mais date des deux décisions de l'Office suisse de compen-
sation pendant la période s'étendant de juin 1945 à février 1946,
au sujet du caractère suisse de 1'Interhandel. L'Autorité suisse de
recours a simplement réexaminé les décisions ci-dessus à la suite du
recours introduit par 1'Interhandel contre le blocage temporaire
de ses avoirs et elle les a adoptées pour fondement de sa propre
décision.
Les deux décisions de l'Office suisse de compensation indiquent
le moment où le Gouvernement suisse a défin;son attitude Quant
au caractère syisse de 1'Interhandel - attitude en contradiction

avec celle des Etats-Unis.
Quant à sa position sur la question de la pertinence de l'Accord
de Washington à l'égard des décisions de l'Office suisse de compen-
sation et de l'Autorité de recours, la note du Département d'Etat
adressée au ministre suisse à Washington le 26 juillet1948 mentio-
nant l'aide-mémoire du 21 avril 1948 déclare:
«Le Département fit ressortir en outre que telle avait étécons-
tamment la manière de voir du Gouvernement des États-Unis,
depuis le 25 mai 1946, et que, lors de la signature de l'Accordcette
manière de voir avait étésignaléeaux fonctionnaires suisses et
comprise par eux. ))

Il est vrai que le Gouvernement suisse a contesté qu'il figurât au
dossier des négociations qui ont abouti à l'Accord de Washington
du 25 mai ;946 aucune trace de déclarations faites par les représen-
tants des Etats-Unis et a estimé que:

«En tout cas, de telles déclarations n'auraient pas d'effet obli-
gatoire pour les signataires de l'Accord, étant donnéqu'il n'en est
fait mention ni dans l'Accordni dans son annexe ni dans les lettres
échangées en date du mêmejour. ))
Mais il est également vrai que l'opinion des États-unis sur le
caractère ennemi de l'Interhande1, qui est au centre du différend

actuel, ne s'est modifiée en aucune façon depuis les négociations de
l'Accord, en mai 1946, et même,comme on l'a montré plus haut,
depuisl'époque de la mise sous séquestre des actions de la G.A. F. en
1942, tout comme le Gouvernement suisse n'a pas modifiésa position
quant au caractère suisse ou neutre de l'Interhande1, depuis les
deux décisionsde l'Officesuisse de compensation en novembre 1945
et février 1946. La note des États-unis du 26 juillet1948 n'a fait

50July 26th, 1948, only further confirmed its previous view of the

enemy-controlled character of Interhandel and did not originate
that view.
There remains one question to consider, namely, whether the
discussions between the United States representatives and the
Swiss Authorities concerning the German or Swiss character of
Interhandel are relevant to the present dispute and whether they
do not relate only to Interhandel's assets in Switzerland. In my
view their relevance is self-evident. The character of Interhandel,
whether German of Swiss, that is, whether enemy or neutral, is the
crucial issue in the present case with reference to its assets in the
United States just as it was with reference to its assets in Switzer-
land. It is on this issue that the two Partiesare in conflict from the
time when the Swiss Authorities defined their attitude on the basis
of the decision of the Swiss Compensation Office in June 1945-
February 1946, later confirmed by the Swiss Authority of Review.
Both Parties have maintained their respective positions, not only
with regard to Interhandel's assets in Switzerland but also with
full realization of the consequent effect upon Interhandel's GAF
assets in the United States. As was claimed by Swiss counsel in the

oral pleadings,
"When property belongsto Swks physical orlegalpersonswhose
Swiss character has already been confirmedin a binding and just
manner by the Authority of Reviewset up under the Washington
Accord,they must inevitably followthe fate of property unblocked
in Switzerland."
Itis clear that the real subject of the dispute before the Court is
the question of the enemy or neutral character of Interhandel and

not the restitution of its GAF assets, which is only the object ofthe
Swiss claim ; and that it arose before August 26th, 1946, the date of
the United States Declaration of Acceptance of the jurisdiction of
the Court. 1 am, therefore, of the opinion that the First Preliminary
Objection should have been sustained by the Court. INTERHANDEL (OP. INDIV. M. WELLINGTON KOO) 53

que confirmer sa position antérieure sur le caractère ennemi du
contrôle exercé sur YInterhandel. Elle n'est pas le point de départ
de cette o~Inion.
Il resteunequestion à examiner,qui est-de savoir si les discussions
intervenues entre les représentants des Etats-Unis et les autorités
suisses au sujet du caractère allemand ou suisse de 1'Interhandel

sont pertinentes à l'égard du différend actuel ou si elles n'ont pas
trait uniquement aux avoirs de 1'Interhandel en Suisse. A mon avis,
leur pertinence va de soi. Le problème central pur la présente
affaire au sujet des avoirs de 1'Interhandel aux Etats-Unis, tout
comme au sujet de ses avoirs en Suisse, est de savoir si cette société
a un caractère allemand ou suisse, c'est-à-dire, ennemi ou neutre.
C'est sur cette question que les deux Parties sont en conflit depuis
que les autorités suisses ont définileur attitude sur le fondement
de la décision de l'Office suisse de compensation de juin 1945 à
février 1946, décision confirméeultérieurement par l'Autorité suisse
de recours. Les deux Parties sont restées sur leur positionrespective,

non seulement vis-à-vis du problème des avoirs de 1'Interhandel en
Suisse mais aussi quant à la pleine réalisation de, l'effet ultérieur
sur les avoirs de1'Interhandel dans laG. A.F. aux Etats-Unis. Ainsi
que l'affirmait le conseil suisse au cours de la procédure orale:
((lorsque ces biens sont la propriétéde personnes physiques ou
morales suisses dont le caractère suisse a déjàétéconsacréd'une
manière obligatoireet définitivepar l'autoritéde recours de l'Accord
de Washington, ils doivent suivre fatalement le sort des biens
débloquésen Suisse ».(C.R. no 13,p. j.)

En effet, l'objet véritable du différend présentédevant la Cour
est le problème du caractère ennemi ou neutre de 1'Interhandel et
non pas celuide la restitution de ses avoirsdans laG. A. F., qui fait
uniquement l'objet de la demande suisse; et qu'il a surgi avant le
26 août 1946, date de la déclaration d'acceptation de la juridiction
de cette Cour par les États-unis. J'estime par conséquent que la
Cour aurait dû retenir la première exception préliminaire.

(Signé W)ELLINGTOK NOO.

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Document Long Title

Separate Opinion of Judge Wellington Koo

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