Separate Opinion of Sir Percy Spender

Document Number
034-19590321-JUD-01-04-EN
Parent Document Number
034-19590321-JUD-01-00-EN
Document File
Bilingual Document File

SEPARATE OPINION OFSIR PERCY SPENDER

In my opinion, as a result of the inclusion in the United States
Declaration of Acceptance of the Court's jurisdiction of its Reser-
vation (b) stipulating that the Declaration should not apply to
disputes with regard to matters which are essentially within the
domestic jurisdiction of the United States as determined by the
United States, the Court has no valid United States acceptance
of itsjurisdiction before it and is without competence to entertain
the Application of the Government of Switzerland. This conclusion

emerges from an examination of Objection 4 (a).
The Court upholds the Third Objection and holds that the
Application of the Swiss Government is inadmissible. Having
regard to this decision the Court being further of the opinion that
part (a) of the Fourth Objection is without object at the present
stage of the proceedings, finds it not necessary to adjudicate
thereon.
There is more than a little practical wisdom to recommend this
as a course to follow. The Objection presents issues of far reaching
significance. They concern not only the interests of the two States
engaged in the present proceedings but those of other States as
well. 1 would have preferred to adopt towards part (a) of the
Fourth Objection the same attitude as has the Court, but after
considerable reflexion 1 regret that this is not open to me.
To decide upon al1 other objections raised by the United States

to the Court's jurisdiction and not to deal with this Objection, is
to leave unanswered questions which strike at the very roots of
the Court's jurisdiction.
The United States has challenged jurisdiction on a number of
grounds. It has failed on its Objections 1, 2 and 4 (b), which are
objections to the jurisdiction of the Court. It has succeeded on
its Third Objection, but this has properly been treated by the
Court as a plea not to its jurisdiction but to theadmissibility of
the Application of the Swiss Government.

Before however adjudicating upon the Third Objection, the
Court, in my opinion, is obliged first to satisfy itself that othenvise
it has jurisdiction. It cannot be so satisfied unless and until it
rules upon Objection 4 (a).
The United States under this Objection has invoked the auto-

matic reservation contained in its Declaration of Acceptance. It
declines thereunder to submit to the jurisdiction of the Court the
matter of the sale and disposition of the shares in GAF, including
the passing of title. This declination applies tol1the issues raised
in the Swiss Application and Memorial, including, but not limited
52 to, the Swiss-United States Treaty of Conciliation and Arbitration

1931 and the Washington Accord of 1946.

This objection was maintained in the United States' final con-
clusions and submissions.
Neither State to the present proceedings was willing to examine
too critically the vital questions posed by the Objection. The
Objection was handled tenderly by both and for understandable
reasons.
The issues involved raised their heads in the Norwegian Loans
case (-1.CJ.. ReportIg57 p,.9).Here also, each sidewalked discreetly
around them. Because in that case the validity of the reservation
of the Republic of France was not questioned by the Parties,
because indeed both Parties to the dispute regarded the reservation
as expressing their common will relating to the Court's competence,
the Court gave effect to the reservation as it stood and as the
Parties recognized it.

In the present case the validity of the United States reservation
was questioned by the Swiss Government. In the course of the
oral argument the Co-Agent for Switzerland submitted (inter alia) :
"As we have already said in our observations, so-called auto-
matic reservations are incompatible not only with the very prin-
cipleof compulsory arbitration (Article 36 (2) ...of the Statute),
but also with Article 36 (6) ...which gives the Court the power
to determine its own jurisdiction."

In the formal submissions of the Government of Switzerland
made at the end of the oral proceedings, it rather moved away
from this by contending that the Objection now being limited
in the present case to the right to dispose of and sel1 the shares
in GAF, it was in reality completely linked with the fate of the
United States Objection 4 (b) relating to the domain that is
reserved according to customary international law. 1 cannot agree.

If the reservation of the United States is invalid because of
incompatibility with Article 36 of the Statute of the Court, it
would be impossible for the Court to act upon it. More than this,
if itis invalid this may involve as in my opinion it does the total
invalidity of the United States Declaration of Acceptancerendering
it null and void.
The jurisdiction of the Court depends upon the Declarations of
Acceptance made by the Parties before it in these proceedings.
Whether it has or has not jurisdiction depends not only upon the
consensus of agreement to be derived from a comparison of the
two Declarations, but upon whether that consensus is compatible
with the provisions of the Court's Statute. Is, then, the United States reservation (b) compatible with
Article 36 ofthe Statute ?And if not, what are the legalconsequences
which flow from this incompatibility?
The Court can only function within its Statute and within the
limits of its authority. It cannot depart from the terms of the
Statute.
If the reservation of the United States is inconsistent with the
Statute, or if the result of its inclusion in its Declaration is to
render the latter wholly inoperative as an acceptance of the Court's
jurisdiction, theCoizrt, in my opinion, is bound so to declare.
Article 36 (6) of the Statute provides that in the event of a
dispute as to whether the Court has jurisdiction the matter shall
be settled by the decision of the Court. But the United States
reservation (b) empowers the United States exclusively on its own
determination to Say in the event of a dispute whether the Court
has or has not jurisdiction. In the event of a dispute as to the
Court's jurisdiction the matter is not settled by the decision of the

Court unless the United States so agrees. It determines whether the
matter shall or shall not be settled by the Court. But it is the Court
and the Court alone that under the Statute is to decide its juris-
diction. It is not competent for a State to reserve to itself a right
to withdraw from the Court inthe event of a dispute as to whether
the Court has jurisdiction in a particular case, the very matter
which by virtue of Article 36 (6) shall be settled by the decision
of the Court.
The United States in this case has invoked its reservation and
so sought to prevent the Court from exercising the authority given
to it and discharging the duty imposed upon it by its Statute.
This reservation may be used by the United States to prevent
the Court from discharging its function and to exclude from the
Court's competence at any time any dispute with regard to any
matters which the United States itself determines as essentially
within its domestic jurisdiction.
Whether any jurisdiction at any time resides in the Court in
respect of any dispute; whether there is any obligation upon the

United States to accept the jurisdiction of the Court on any dispute,
depends upon the will or subjective determination of that State,
a determination that may be made even after the dispute has
been brought before the Court.
This reservation is clearly inconsistent and incompatible with
Article 36 (6) of the Statute and with the concept of compulsory
jurisdiction and reciprocal obligation contemplated in Article 36
(2) thereof. An "obligation" to recognize the jurisdiction of the
Court, the existence or extent of which "obligation" in respect to
any particular dispute is a matter which can be determined by
the State concerned, is not a legal obligation at all.
It is in no way relevant to assume, as assume 1 do, that the
United States would seek to use its reservation with prudence and
reason. In my opinion reservation (b) of the United States is invalid. If
so, the Court is unable to give any effect to it.

What are the consequences of its invalidity?
The answer seems to me dependent upon the enquiry whether the
reservation, either wholly or in part, is severable from the rest of
the Declaration.
1s it permissible to discard the reservation altogether or the
words "as determined by the United States", leaving what remains
of the Declaration valid and operative?
The answer is clearly, 1 would think, "no", and for the reason
that the reservation, of which the words "as determined by the
United States of America" are the core, is not a mere term but an
essentialcondition of the United States Acceptance. The reservation
could be described as a critical reservation without which the
Declaration of Acceptance would never have been made. This
seems reasonably self evident. It is not in my opinion permissible to
have recourse to the debate in the United States Senate when the
Declaration was before it; nor, were it permissible, would it be
necessary or profitable. The will and the intent of the United States
is to be found in its expression thereof in its Declaration ofccept-
ance and nowhere else. The meaning of the reservation, automatic

in character, is clear. To sever this reservation or the words "as
determined by the United States" and to hold that the Declaration
after severance represents the will and intent of the United States
would be to ignore the proper construction to be accorded to the
Declaration as a whole. To do so would impose upon the United
States an acceptance quite different to that which it made. It
would have no warrant in law. In my opinion the reservation is
a vital and unseverable condition of the Declaration of Acceptance.
If it is bad, neither it nor any part of it can be severed from the
whole. If it isinvalid, as in my opinion it is, the whole Declaration
is nul1 and void.

In my opinion this concludes the matter. The Court is without
jurisdiction.
Certain other possible constructions of the reservation should
however be considered.
May it not be read as implying that the determination of the
United States must be "reasonable" and so Save it from any
inconsistency with Article 36 (6)?
So to read the reservation would require us to disregard its terms.
That is precisely one of the things the reservation was intended to
remove from any jurisdiction of or any review by the Court. The

history of the reservation would itself prove this abundantly. But
there is no need to go beyond the words of the reservation itself.
There was excefitedbythe United States from the field of its accept-
ance of the Court's jurisdiction any dispute which it-not some
55other body-determined as essentially within its own domestic
jurisdiction, and irrespective of whether or not this Court should
think the exercise by the United States of its sovereign power in
so determining was or was not reasonable or the circumstances
such as would make it reasonably possible for it so to determine.
The United States, and it alone, was the sole judge of its action
and/or of its reasonableness.
In the Norwegian Loans case, Judge Read, when dealing with
the terms of a somewhat comparable French reservation-"disputes
relating to matters which are essentially within the national juris-
diction as understoodby the Government of the French Republic"
-construed it as permitting the Court to review the reasonableness
of the circumstances under which the reservation was invoked.
Whether the circumstances were such that it would be reasonably
possible for Norway (relying in that case on the principle of

reciprocity) to reach an understanding that the dispute was essen-
tially national, would be a question for the Court to determine.
But if those circumstances existed the conclusion reached by the
State could not be questioned. In other words, whether the cir-
cumstances were such was not for a Government but for the
Court. If, however, such circumstances existed, the conclusion
of the Government concemed determined the matter (I.C.J.
Reports 1957, P. 93).

It is not necessary to examine the reasons of that distinguished
Judge in reaching this view. 1 think it reasonably clear that, had
he been faced with the reservation in this case, he would have
come to a quite different conclusion. The learned Judge was, of
course, dealing with an automatic reservation couched in different
terms. Had he felt compelled to interpret.\its words as meaning
that the relevant Government had an arbitrary power to settle
any question of jurisdiction, then it would bave been necessary

for him to conclude that the Declaration of France was nul1 and
void as contrary to Article 36 (6)of the Statute. "It isinadmissible,
by a process of interpretation, to rewrite the Clause in question
as if it read 'disputes relating to matters as regards which the
Government ... has declared that it understands that they are
essentially within the national jurisdiction'." (P. 95.) That would
have conferred an arbitrary power. The reservation in this case
is at least as strong. The word "determined" is one of very definite
content.
In my opinion there is no room whatever for construing the
United States reservation by implying into it a concept that the
determination must be reasonable or that it must not be unrea-
sonable.
There remains to be considered whether the reservation should
be interpreted in the sense that the Court has jurisdiction to
decide whether it is invoked in good faith.

56 This reservation left the question of jurisdiction specifically
to be "determined by the United States of America and by it
alone. It cannot be construed as meaning that the words inserted
by the United States as a reservation from the Declaration of
Acceptance should be read as containing the words "provided it
is so determined by the United States of America in good faith".
There is no room for redrafting the reservation and giving it an
entirely different meaning to that which its words bear and which
they clearly enough were intended to bear.
To do so would involve rewriting proviso (b) of the United States
Declaration of Acceptance, would distort the meaning of the Decla-
ration by imposing a quite different reservation upon the United
States to that inserted by it as a condition of its acceptance.
There is no room for questions of abuse of power or good faith
or bad faith in relation to a determination by the Government

concerned that the dispute is within its domestic jurisdiction.

In my opinion, the reservation of the United States proviso (b)
to its Declaration of Acceptance is invalid. Neither it nor any
part of itcan be severed therefrom since it is of the essence of the
Declaration of Acceptance. The Declaration is incompatible with
any compulsory legal obligation and with Article 36 (6). It has
no legal force as a declaration under Article 36 (2). Accordingly, 1
am compelled to the conclusion that the United States Declaration
of Acceptance is, and has from its inception been, nul1 and void.
The United States cannot sue or be sued in this Court on the
basis of its Declaration. It has, in short, never legally submitted
to the jurisdiction of the Court.

In the result 1 am of opinion that the Court has no jurisdiction
to deal with the Application of the Government of Switzerland
except so to declare. Since however the majority of the Court

take the view that the objection should not be decided at the
present stage of the proceedings, 1 deem it my duty to express
my views on the other objections put fonvard by the United States.

First Objection

The United States Declaration of Acceptance of the compulsory
jurisdiction of the Courtis limited to disputes "hereafter ansingJ'-
that is arising after the 26th August 1946.Disputes which had there-
tofore arisen are accordingly excluded.
The purpose and intent of such a provision is clear. It accepts
the Court's jurisdiction on disputes arising after the relevant date.
It excludes from it al1 disputes which have arisen before the
27th August 1946. If a dispute existed before this date, it matters
not in what form it may subsequently be presented to the Court
or what the legal issues directly connected with and relevant to the

57dispute rnay be or become, or what the nature of the relief claimed,
that dispute is not within the competence of the Court.
Such a provision, if it is not to be interpreted in a manner to
exceed the intention of the State accepting the jurisdiction of the
Court, should receive a broad construction.
A "dispute" within the meaning of the provision need not be
spelt out or defined with legal exactitude or particularity. It is
enough if its subject-matter anditsnature are identifiable. A dispute
rnay anse long before it crystallizes into its component parts or
reveals all its different facets. No special formality is necessary.
It need not anse in the course of diplomatic negotiations. It rnay
do so independently thereof and rnay precede negotiations.

Nor is it a condition precedent to a "dispute" arising that one
State must indicate that it intends to resort to international judicial
or arbitral procedure or action unless its claim is satisfied. A State
party to a dispute rnay temporarily abandon its contention; rnay
subsequently revive it and then decide to seek a remedy by judicial
or other proceedings or action.

A dispute rnay lie dormant for years. The decision to take action
andthe nature of the action to betaken, the forum to be chosen, or
the remedy to be sought are not decisive as to whether a dispute at
any aven time exists or existed.

A dispute may, as not infrequently happens, enter upon a new
phase. An entirely separate dispute rnay of course anse between
the parties with which the existing dispute is only casually con-
nected. But if the substance ofthe dispute remains the same, the fact

that it has entered upon a new phase or that other issues directly
connected with and relevant to the dispute in which the parties
are also in disagreement are subsequently added or appear, or that
new claims for relief are presented, cannot alter the problem such
as is here presented to the Court. Were it otherwise, legal ingenuity
would usually be able to transmute a dispute which clearly enough
was beyond the jurisdiction of the Court, into one within its
competence. The Court should concern itself with substance, not
form.

"Disputes" within the meaning of the United States Declaration
must bear the same interpretation as the sarne word appearing in
Article 36 of the Statute, with which it is CO-terminousin meaning.
A State submitting to the jurisdiction of the Court is entitled to
place reliance upon the judicial pronouncements of this Court and
its predecessor, as to the meaning to be given to this word when
settling and agreeing upon the terms of its Declaration of Accept-

ance.
58 The Permanent Court of International Justice and this Court
have on a number of occasions considered the meaning of this
word. In my opinion it is not necessary to go beyond the pronoun-
cement of the Permanent Court of International Justice in the
Mavrommatis Palestine Concessions (P.C.I.J., Series A, No. 2 at
p. 14), "a dispute is a disagreement on a point of law or fact, a
conflict of legal views or interests between two persons". See, too,
German Interests in Polish Upper Silesia (P.C.I.J., Series A, No. 6
at p. 14); Chorz6w Factory Case (P.C.I.J., Series A, No. 13 at
pp. IO and II); Asylum Case (I.C.J. Reports 1950, at p. 403).
Nothing which appears in the Right of Passage overIndian Territory
(I.C.J. Reports 1957) qualifies this definition.

In the light of these observations, did then the dispute, the
subject of the litigation,nse before or after the 26th August 1946?
To provide the correct answer it is necessary to determine what

the dispute is.
The dispute "relates" to an alleged obligation of the United
States to restore to Interhandel certain assets within the United
States. These assets were the shares in G.A.F. But to Say that the
dispute "relates" to a certain subject-matter does not state or
identify the nature of the dispute.
There could not be other than complete agreement with the view
expressed in the Court's judgrnent that facts and situations which
lead to a dispute must not be confused with the dispute itself.
Neither should the "dispute" be confused with the "claim" or
claims for relief, which normally may be expected to follow the
dispute itself, or with the subject-matter of each claim. The present
case is an example of the need in particular to distinguish between
the "subject-matter of the dispute", the "dispute" andthe "claim".

The relevant factsin the present case which constitute the dispute
have not altered since and October 1957when the SwissApplication
was filed. Yet since the date thereof a number of new claims have

been put fonvard. Nonetheless, the "dispute" has remained the
same.
In the Swiss Application the dispute is referred to in the pream-
bular paragraph as having ansen "relating" to the restitution
bythe United States of the assets above mentioned. The Application
then proceeds to set out the facts on which the Application is
founded. It refers to "disputeJ' throughout in the singular. It
states inter alin that "the dispute" concerns the interpretation of
a treaty and questions of international law and that its settlement
"involves interpretation of the Washington Accord and an examin-
ation of questions ofinternational law". Nowhere in the Application,
except in so far as is to be de termine^ from the facts stated, is
"the dispute" defined. To state that the dispute "relates to, etc."
does not itself indicate or determine its nature. Although two different claims for relief were put forward in the
Application, Switzerland itself only refers throughout to one

dispute which it had sought to have settled first by negotiation, then
by seeking recourse to arbitration, etc., and finally by application
to this Court.
It is that dispute-whatever it was-that the Application asks
the Court either to determine itself on the merits, or, alternatively,
to declare is one fit for submission for "judicial settlement, arbitra-
tion or conciliation".
What then, on a proper examination of the facts, was the nature
of the dispute to which Switzerland is referring?
It is, 1 think, clear enough that it was, whether or not Inter-
handel, the nominal owners of the shares in G.A.F. at the time of
vesting, was Swiss-owned or German-owned or controlled.

This, 1 think, is borne out by the correspondence and documents
which passed between the Parties, and is supported by the Appli-
cation itself and the Memorial.
The fundamental Swiss contention, in whatever different forms

it seeks relief, or whenever a demand for restitution was made, is,
that Interhandel was Swiss (neutral),not German (enemy). It iç
on the resolution of this dispute that any obligation by the United
Statesto make restitution basically depends.

Whether the dispute were determined by this Court on its merits,
or dealt with by arbitration or conciliation, the dispute-as distinct
from the forms in which relief is claimed, which have 1 think too
greatly controlled the decision of the Court-is the same. And this
remains so whether the Swiss Government, in seeking to have the
shares restored to Interhandel, calls in aid ArticleIV of the Wash-
ington Accord, the decision of the Swiss Authority of Review, or
the Arbitration and Conciliation Treaty of 1931.

If the dispute did not arise after 26th August 1946, it is not in
my opinion competent for the Court to deal with that dispute in

any way either on its merits or by declaring that that dispute "is
fit for submission for judicial settlement, arbitration or concilia-
tion". Such a dispute is wholly outside the jurisdiction of the Court.
There are 1 think certain signposts before and after the 26th Au-
gust 1946 that give direction to our enquiry.

(a) The main, if not the only substantial reason why the United
States repeatedly maintained that the "blocking" of Interhandel in

Switzerland should be continued was because its principal asset
was its participation in G.A.F. then being administered by the
U.S. Alien Property Custodian. This was known to the Swiss
authorities from at least July 1945 (Exposéof Swiss CompensationOffice, 24th September 1947, Annex 3 to the Swiss Memorial,

P. 7).

(b) The United States Authorities from July 1945 to August 1946
"repeatedly maintained to the Swiss authorities that the connection
with I.G. Farben was still maintained". (Ibid.)
(c) In the opinion of the Swiss Compensation Office the German
interest in Interhandel could not be proved.

(d) "Like the earlier enquiry the second investigation (Footnote
November 1945-Febmary 1946) established that Interhandel was
in no degree under German influence." (Swiss Application 3 (b).)
(4 "Despite this quite categoricaloutcome the Swiss Compensa-
tion Office continued to block Interhandel-taking into account
the fact that the allied members of the Joint Commission, which
meanwhile had been set up under the Washington Accord, had not
been willing to acceptthe findings of the second enquiry." (Ibid.)
(8 The G.A.F. remained under the administration of the Alien
Property Custodian from 1942 onwards because it was considered
by the United States "to be a company under German control".
(Decision of Swiss Authority of Review, Annex 19 to Swiss 3lemo-
rial, para. B.)

(g) The question decided by the Swiss Authority of Review was
whether Interhandel was under German control.(Ibid., para. 4.)

(h) The Swiss Authority of Review found this issue in favour of
Interhandel and ordered the blocking to be annulled. (Ibid., paras.
II and 12.)
(i) This decision provides one of the main supports relied on by
the Swiss Government in this case.

(j) The Memorial of the Government of Switzerland under Part 1
thereof "Statement of Facts" states that Interhandel attempted
many years before the Second World War "to free itself from al1
German influence and succeeded as we shall show". (First para-
graph.) In paragraph 6 "To decide whether a preponderant German
interest existed" in Interhandel the distribution of shares in that
Corporation is examined. In paragraph 7 "To determine whether
or not" Interhandel "was subject to Germancontrol" some impor-
tance was attributed to the composition of the machinery of the
Corporation which subsequent paragraphs deal with. In paragraph
18 referring to the two decisions of the Swiss Office of Compensa-
tion it is stated that the first "found ...that Interhandel had
completely severedits ties with I.G. Farbefzin 1940 and therefore
there was no need to decree the blocking of its property", the
second enquiry "confirmed that Interhandel was not controlled by
the Germans". In Part II under "Statement of the Law" para-

61graph 81 states "The Swiss Government alleges that the property
of the G.A.F. is Swiss. It is therefore incumbent upon it to prove
that fact. Such proof would appear to us to be furnished as soon
as it is established that the+reponderantinterestin the Corporation
under the control of which G.A.F. is (in other words Interhandel)
is in Swiss hands. This conclusion also results from the investiga-
tions of the Swiss Compensation Officeand from the decision of the
Authority of Review which also coverthe American assets. It is up
to the respondent to furnish proof to the contrary."

(k) The Submissions t8 the Memorial recite (inter alia):

(i) The United States u7asby virtue of Article IV of the Wash-
ington Accord under an obligation to unblock Swiss assets in the
U.S.A. including those of Interhandel. (1st recital.)

(ii) Interhandel was not under enemy control at the time of the
entry of the United States into the Second World War. (2nd recital.)

(iii) G.A.F. was controlled by Interhandel. (2nd recital.)
(iv) The decision of the Swiss Authority of Review recognizes
theSwiss characterof Interhandel. (3rd recital.)
(v) That decision became res judicata vis-à-vis the parties tothe
Accord and so internationally binding on the United States of
America. (4th recital.)

(vi) Independently of the above decision general international
law prohibited the confiscation of private property belonging to
nationals of nezctralStates. (5th recital.)
(vii) Accordingly the United States was bound as a result of the
decision of the Swiss Authority of Review to restore the assets
of Interhandel. (6th recital.)

(I) "Despite" the decision of the Swiss Authority of Review "the
American authorities categorically refused to comply with the
Swiss request for the release of the G.A.F. shares in the United
States". (Paragraph 4 of Application.)
The essential nature of the dispute referred to by Switzerland
in its Application and Memorial was whether or not Interhandel,
the nominal owners of the shares at the time of vesting, was
"Swiss" owned or "German" owned or controlled, in other words
whether Interhandel had completely severed its ties with I.G.
Farben.
The dispute so described may be put in different words, as
indeed at times it has been, but it is that dispute, however described,
which is presently before the Court and it is upon the resolution

62of that dispute that the Swiss claim ultimately depends. If Inter-

handel were Swiss (neutral), not "German" (enemy), the Swiss
claim is that its shareholding in G.A.F. was "Swiss" and should
be restored to it.
Within this dispute there have arisen, as is not unusual, other
issues between the Parties which are themselves the subject of
dispute. But when examined it will be seen that they are but
aspects or parts or phases of the same fundamental dispute.

The Swiss Government in its Application and Mernorial stated
in detail facts upon which it claimed to be in a position to establish
that Interhandel was "Swiss" and accordingly that its share-
holding in G.A.F. was Swiss. In its view whether this was "Swiss"
was dependant upon whether Interhandel was Swiss as it claimed
it was in a position to prove. In support of its case it has, however,
placed much reliance upon the Washington Accord.

Thereunder it claims that by virtue of Article IV, paragraph I
thereof, the United States assumed the obligation to unblock
Swiss assets among which it claims are the assets in G.A.F. alleged

to belong to the "Swiss" Corporation Interhandel. If Interhandel
were Swiss, if, the Swiss Authority of Review found, it had
severed its connections with I.G. Farben, then this share-
holding it is contended was also Swiss. But assuming that this
Article has any relevance to this case, the dispute remained the
same.
Switzerland, in the Observations and Submissions on the Preli-
minary Objections, sought to supplement its claims by an alter-
native claim in which it requested the Court to declare that the
"property" which Interhandel "possesses" in G.A.F. "have the
character of non-enemy (Swiss) property and consequently (the
italics here are mine) to declare that by refusing to return the
said property the United States was acting contrary to the
decision of the Swiss Authority of Review of January 1948 and
was in breach of Article IV, paragraph 1, of the Washington
Accord and of the obligations binding upon them under the general
rules of international law".
Assuming that the decision of the Swiss Authority of Review
is relevant to these proceedings, and this issue is also in dispute,

it is clear that the Government of Switzerland is relying upon it
as conclusive evidence against the United States of America on
the real dispute before the Court, namely, as to the Swiss character
of Interhandel and consequently the Swiss character of its share-
holding in G.A.F.
The fundamental dispute-notwithstanding al1 the other issues
within it-is and has always been whether Interhandel-the
nominal holder of the shares in the United States of America-was"Swiss". And the enquiry under the objection is whether a dispute
on that issue arose before the 26th August 1946.
The "neutral" or "enemy" character of Interhandel was, of
course, material under the Washington Accord for the purpose of
carrying out its primary objective, namely, the uncovering, the
census and the liquidation of German property in Switzerland.
But the character of Interhandel had a significance both for
Switzerland and the United States of America which went beyond
this because of the assets in the United States of America which
had stood in the name of Interhandel before they became "vested".
Once the procedure under the Accord was completed, the Swiss
case on this aspect is, and at al1 material times must have been,
that it covered American assets and applies to "vested" property
in the United States of America. (Annex 22 to Swiss Memorial;
para. 81 of Swiss Memorial.) The United States for its part "because

the principal assets" of Interhandel were the shares in G.A.F.,
had "repeatedly maintained to the Swiss Authorities that the
connection with I.G. Farben was still maintained". (Annex 3 to
Swiss Memorial.) It is, 1 think, a proper conclusion that both the
United States of America and Switzerland in the discussions
and correspondence which took place between the two countries
after May 1946 at the latest, regarded the character of Interhandel
in relation to the liquidation of German property in Switzerland
as having a connected and significant bearing on Interhandel's
shares in G.A.F.
Interhandel was a holding Company. Its most important asset
were the shares in G.A.F. It held over go per cent of the shares
therein. Somewhat less than half of the ordinary shares of Inter-
handel were the property of G.A.F. If Interhandel were held by the
Swiss authorities to be "Swiss", whilst that could not-apart from
the Swiss arguments based on Article III of the Annex to the
Washington Accord (res judicata)-have decided the fate of Inter-
handel "assets" in G.A.F., it could assume considerable importance
in relation to them and any alleged obligation upon the United

States to restore them to Interhandel. On the other hand, were
Interhandel determined by them to be "German" or German
controlled, this would have had an important practical bearing
on any claim by Interhandel to have the shares restored to it.

It is contended by Switzerland that prior to the 26th August
1946, the Swiss authorities were not concerned with the fate of
Interhandel's shareholding in G.A.F. Any difference of opinion, if
any, which took place prior thereto, could,therefore, it isid, have
had no relation to that shareholding.
To the extent to which it is necessary to deal with this con-
tention, 1 cannot accept this as accurate. The United States were
expecting Interhandel to bring suit in the United States to recover
the shares in G.A.F. The letter of 20th August 1946 from the Swiss

64Compensation Officeto Mr. Le Roy Jones, described as Chief of the
Alien Property Section Department of Justice of the United States
(Annex 3 to Swiss Memorial, p. g), appears sufficiently to establish
that Switzerland shared the view that Interhandel would probably
bring such a suit.
Whether any difference of opinion which took place before the
date of the Washington Accord did or did not bear a relation to
Interhandel's holding in G.A.F., 1 am of the opinion that after the
date thereof it did have such a relation, and a direct one.
I. The Swiss Compensation Office, under the Washington

Accord; was the authority empowered to uncover, take into
possession and liquidate the property in Switzerland of Germans
in Germany.
2. The view of the Swiss authorities is, and consistent with the
case it makes out must, it seems to me, at the relevant times have
been that :
(a) The Swiss Authority of Review was created by the Accord
and its duty was, when required so to do, to review the decisions

which the Swiss Compensation Office was called upon to take
under the Accord.
(b) The fact that the Swiss Compensation Office began its in-
vestigations in respect to Interhandel before the conclusion of the
Accord in no way would prevent a decision of the Authority of
Review from having been taken within the framework ofthe Accord
because of the provisions of Article I thereof. "In other words,
though the investigations of the Swiss Compensation Officebegan ...
before the conclusion of the Accord ...they were continued and
completed within the framework of the Accord" (Swiss oral argu-
ment of 11th November 1958). The decision of the Swiss Compen-

sation Office "was made in observance of the Articles of the Accord"
(Swiss Note of 7th September 1948, Annex 22 to Swiss Memorial).
The significance of this viewpoint becomes apparent when seen
against the light of the Swiss contention that the decision of the
Swiss Authority of Review "confirming the non-German character
of Interhandel became res judicata" since it was an appeal from the
Swiss Compensation Office made by "the party (Interhandel) in
interest" under the Accord.
3. The procedure laid down in Article III of the Annex to the
Accord, the Swiss Government claims, would determine what were
Swiss assets in the United States under Article IV of the Accord
(Swiss Note of 7th September 1948, Annex 22 to Swiss Memorial).

"The Washington Accord specifies in Article IV, Section 1, that the
Government of the United States is under an obligation to unblock
Swiss assets in the United States, that is to say,-all Swiss assets
without any exception whatsoever. Who decides whether any parti-
cular pro$erty should bedescribedasSwiss assets? Who decideson the
criterion for distinguishing Swiss assets from German assets blocked
in the United States?

65 "If we study the Washington Accord inthis connection, one thing

is certain. When property belongs to Swiss physical or Zegalpersons
whose Swiss character has already been confirmed in a binding and
final manner by the Authority of Review under the Washington
Accord, they must inevitably follow the fate of property unblockein
Switzerland" (Swiss oral argument, 11th November, 1958).

4. Under the Accord (Article III of Annex thereto) decisions of
the Authority of Review, made under the provisions of the Accord,

were final. But so also were the decisions of the Swiss Compensation
Office, unless the Joint Commission was "unable to agree to the
decision of that Office", or unless "the party in interest" desired
the matter to be submitted to the Authority of Review. Article III
of the Annex provides "The decisions of the Compensation O@ce
or of the Authority of Review, should the matter be referred to it,
shall befinal."
5. A decision of the Swiss Compensation Office was, on the

Govemment of Switzerland's case as 1 understand it, the
initial step in the chain of proof to establish under Article IV of
the Accord, whether Interhandel's "assets" in the United States
were or were not "blocked" assets, which under Article IV of the
Accord, the United States of America was under obligation to
unblock. If the Swiss Office of Compensation decided that Inter-
handel was "Swiss"-as,'of course, it had already done-and it
confirmed its determination or conclusion after the Washington
Accord, and if the United States (or Joint Commission) did not
contest its determination or conclusion, the view of the Government
of Switzerland must have been it seems to me that that would
decide the fate of Interhandel's "assets" in G.A.F. If the Joint
Commission Powers refused to accept the decision of the Swiss
Compensation Officeand the matter went before the Authority of
Review, its decision would become Switzerland claims res judicatu
unless the Allied Governments requested arbitration. In other
words, if the Swiss character of Interhandel in Switzerland, as

determined by the Swiss Compensation Office, was admitted or
not contested or if on review Interhandel was determined by the
Swiss Authority of Review to be Swiss, the shares in G.A.F., on
the Swiss view of the Accord, would "inevitably follow the fate of
property unblocked in Switzerland".
It is not without significance that as at the 12th December 1945,
454,948 "A" shares in G.A.F. were deposited in Switzerland in the
form of certificates and these were claimed by Interhandel to be
fully under its control.
Did or did not the Swiss Government, as from the date of the
Accord, and before the 26th August 1946, hold the opinion that
Interhandel was not "German" or under German control but
"Swiss" and that consequently Interhandel's "assets" were "Swiss"

66not "German"? If it did, it was an opinion directly opposed to
that of the United States authorities. 1 am satisfied it did, irre-
spective ofwhether that opinioncould be described as "provisional"
or subject to possible change, or not. It was a firmly held opinion
put forward in direct conflict with that held by the United States
authorities since 1942.Moreover it seems to me clear enough that on
Switzerland's case, it knew at least that the determination of the
Swiss Compensation Officewas a not unimportant factor in estab-
lishing the Swiss character of G.A.F. "assets" in the U.S.A. The
Swiss Compensation Office was on its case a definite link in the
procedure necessary to prove that Interhandel's "assets" in G.A.F.
were Swiss assets in the U.S.A. The Swiss Compensation Officewas
the competent Swiss authority for this purpose.

Whether the convictions and contentions of the Swiss authorities
are to be called provisional or otherwise-whatever terms are used
to diminish the significance of the official Swiss attitude after the
Accord and before 26th August 1946-it is 1think sufficiently clear
that the Swiss attitude must have been that Interhandel was Swiss,
and accordingly its holding in G.A.F. was Swiss, with the conse-
quence which flowed from that if their claim as to the applicability

of Article IV of the Accord was correct.
It said in terms quite sufficient to establish a dispute+ur
opinion is that Interhandel is Swiss-that is our contention-that
is Our determination. Ifyou persist in claiming otherwise, prove it,
if you can.
1do not intend to detail all the further evidence whichpersuades
me that the dispute existed before the 26th August 1946. 1 shall
content myself with the following:
(a) The Swiss Compensation Office investigated Interhandel
June- July 1945. It "drew ...the logical conclusion that Interhandel
was a Swiss company ..."(para. 3 (b) of Application). This con-
clusion was diametrically opposed to the officia1determination of

the United States.
(b) The Swiss Compensation Office, against its conviction and
only at the direction of the Swiss Federal Political and another
Department, continued the "temporary" blocking of Interhandel.
This was done, the Swiss Govemment states, under pressure by
or as the result of representations from the AUied Governments,
particularly the U.S.A. The blocking was continued not because
there is any reason to suppose the Swiss Political Department
differed with the conclusion of the Swiss Compensation Office, but
because of the pressure or representations. The Swiss Compensation
Office subsequently gave support to Interhandel's appeal to the
Swiss Authority of Review. From at least July 1945 the Swiss

67Compensation Office persisted in its view that Interhandel was
"Swiss".

(c) The United States continued at allmaterial times to assert
that Interhandel was not "Swiss" but "German".

(d) An officia1 statement of the Government of Switzerland
contained in its letter of 6th November 1945(Exhibit 12to United
States Preliminary Objections), after referring to the investigation
of the Swiss Compensation Office,went on to state that a decision
had been made recently to block for a limited time "in order to
permit your authorities, if they persisted in regarding this holding
as under German influence to furnish the proof for it. This way one
has taken into account the importance which your Govemment
attaches to the matter."

(e) At this stage (November 1945)~as appears from this letter,
the Swiss position may be summed up as follows:
Our conclusion is that Interhandel is Swiss-owned. That is
Our opinion. You dispute it. We realize the importance your
Government places on the result, but if you persist in your
contention that the "holding" is under German influence, you

prove it before the 31st January 1946.
(f) At least from February 1946 onwards, the Swiss Compensa-
tion Office remained adamant in its contention that Interhandel
was "Swiss", not "German". It adheredthroughoutto this contention.
The fact that it indicated to United States officials that if they

could produce evidence to establish Interhandel was German-
controlled, it was prepared to consider it, in no way dimin-
ishes the fact that it adhered firmly to its determination and wasin
disagreement with the United States authorities.
(g) The Swiss Political Department was informed not only of
the determinations of the Swiss Compensation Office, but of dis-
cussions with United States officialç. (See e.g. letter of 10th Decem-
ber 1945, President of the Swiss Compensation Officeto M. Petit-
pierre, Head of Political Department of the Govemment of Swit-
zerland, Annex 2 to Swiss Observations, and letter next referred to.)

Only a few further documents need be specifically referred to:

10th August 1946-Letter Swiss Compensation O@ceto MY. Har~y
Le Roy Jones
This letter stated that :
The Swiss Compensation Officewas of opinion that Interhandel
should not be blocked, and for the reason that Interhandel was in

its view "Swiss", not "German". This was a view diametrically
opposed to and in disagreement with the opinion of the United
6871 INTERHANDEL (SEPAR. OPIir;. OF SIR PERCY SPENDER)

States. It was a differencebetween the two countries on an issue of
prime importance, inthe Swiss view at least, and hardly less impor-
tant from the point of view of the United States Alien Property
Control in relation to the G.A.F. holding of Interhandel. There
was a dispute on the real issue (cf. Annex 22 to Memorial, pp. 144
and 146). If Interhandel were unblocked, in the Swiss view-of the
Accord, the fate of G.-4.F. shares "inevitably followed" that event.

Having stated its opinion as above, it refers to the United States
opinion to which Swiss opinion was opposed as-"Your opinion
that the Interhandel firm is controlled by Germans".

In this letter one was saying Interhandel is not controlled by
Germans, or it is olir opinion it is not; the other was saying it is
controlled by Germans, or it is Our opinion that it is. And the
relation of this clash of opinion on Interhandel's G.A.F. holding
is at this stage manifest.

Minutes of Conference at FederalPolitical Department,
16th August 1946
The United States record of the meeting is set out in Exhibit 15
to its Preliminary Observations. Mr. Fontanel, who represented
the SwissFederal Political Department, stated that M. Petitpierre-
the official head of that Department-had said that Interhandel
would not be immediately unblocked, that Interhandel "after two

investigations by the Swiss Compensation Office had beendetermined
to be Swiss-owned", and that M. Petitpierre therefore felt it was
incumbent upon the American authorities to present evidence to
contradict these findings. (Cf. para. 81 of the Swiss Memorial.)

The Swiss Record (Annex 5 to Swiss Observations) supports this,
though it reads somewhat differently.It is, however, quite sufficient
to rely upon the Swiss Record. Mr. Fontane1 asked Mr. Le Roy
Jones, who represented the United States at the conference, what
stage had been reached in the Interhandel "affair". "If the Ameri-
cans desire the blocking to be maintained, they would have to
justify their request by furnishing us, if not with proof, at least
with serious indications that I.G. Chemie is under German control."

It is, in my opinion, not possible to accept the argument that
because no so-called "final position" was taken by Switzerland, no
dispute existed. Parties in dispute frequently change their position.
No so-called final deadlook is necessary to establish a dispute. On
any realistic approach to the matter, the United States and Swit-
zerland were then in dispute on the real issue on which they are
now in dispute.Letter of 20th Azg~st, Swiss Compensation Ofice to Mr. Jones

This is six days before the operative date of the United States
Declaration of Acceptance. There G.A.F. is clearly in the picture.
The Swiss Compensation Office, which at that time was of opinion
that the German interest "cannot be proved" (p. 9 of Annex 3 to
Memorial), was stating that what u7as involved in the United
StatesJ request for further investigation by the Swiss Compensation
Office, in collaboration with the United States Department of
Justice and Office of the Alien Property Custodian, was "not
merely an enquiry concerning the question of the blocking of I.G.
Chemie or measures to be taken under the Washington Accord, but

rather the discovery of documents in the interests of the Office of
the Alien Property Custodian".
It is in my view not possible, on any reasonable reading of this
letter, not to be satisfied that if the dispute had not arisen before
this date, as 1 am of the opinion it had, it certainly at this time
had. The Swiss Compensation Office had, before sending this letter,
submitted the matter to the Federal Political Department. The
whole letter merits special attention, but particularly the para-
graph commencing with the words "Considering that the object ...,
etc.". The reply of that Department was to the effect that in the
main "it confirms the point of view which I have already indicated
to you and which 1 have outlined above. Namely, on the Swiss side,
the opinion is held that it is now for the American authorities to
furnish to the Swiss Compensation Office the means of proof which
in the American view should lead the Swiss Office to block I.G.
Chemie definitively, that it to Say, to consider it...as being under
German influence."

A few final observations:
In my opinion, it is not permissible to treat this objection as
divisible into two parts corresponding to the principal and alter-
native submissions or claims as if there were two separate disputes,
the first, one in which the Government of Switzerland espouses the

cause of its national, the second, one in which she claims relief in an
independent capacity.
To do so leads to error. Such an approach to this objection
mistakes form for substance. It blurs the distinctions between the
subject-matter of a dispute, the dispute itself and the submissions
or claims for relief, which spring from the dispute. It disregards, in
my view, the essential unity of the dispute in this case-the single
dispute referred to in the Swiss Application and Memorial. It focus-
ses attention on the submissions or claims for relief rather than
on the dispute itself.
Al1submissions and claims for relief are directed to one common
purpose, to obtain for Interhandel restitution of its "assets" in
G.A.F. The alternative submission or claim for relief, which directsitself to a means by which this purpose might be achieved, has, to
use the words of the Swiss Memorial (para. go), "simply a subsi-
diary character".
To divide the objection in the manner indicated has, it seems to
me, led to the error of seeking in respect of the first submission or
claim for relief, the initial request by Switzerland for the retum to
Interhandel of its "assets" in G.A.F. and the first negative reply
aven by the United States to that request, and so disposing of the
objection on this part, and then in turn disposing of what was

considered a separate dispute by finding that the same fate should
attend that, since it could not have arisen until after the first had.

In any event, 1 cannot agree that a test of demand and refusal
in this case can be decisive in determining the date of the dispute.
The "neutral" or "enemy" character of Interhandel being the essen-
tial dispute between the Parties, the fact that no claim or demand
for restitution was made by Switzerland until after 26th August
1946 is irrelevant to the issue raised by the objection. When the
demands or requests connected with either the principal or subsi-
diary c-laim for relief were made the dispute, in my view, already
existed.
It is not without significance that the Memorial of Switzerland
contains a number of paragraphs (35-40) which fall under the

heading "Swiss Attempts to settle the Dispute". From a perusal of
these paragraphs it is at once evident that the dispute with which
we are here concemed and to which both the Swiss Application and
its Memorial direct themselves had, as of course it must have,
already arisen before any proposa1 to have recourse to arbitration or
conciliation to settle the dispute was or could be made.

For the reasons above advanced, 1 think the first objection
should have been upheld.

Second Objection

In dealing with this Objection the Court, following the course it
did on the First Objection, has again divided what, in my opinion,
is one dispute into two, elevating what was purely a subsidiary sub-
mission or claim for relief into a separate and distinct dispute.
1 have already expressed my reasons why 1 think this procedure
inadmissible.
Myapproach to the Second Objection assumes, contrary to the
view already expressed by me on the First, that the dispute arose
after the 26th August 1946, and before the 28th July 1948. On that
assumption 1 agree with the decision of the Court and with its
reasons.

71 INTERHANDEL (SEPAR. OPIN. OF SIR PERCY SPENDER)
74
If instead of the words "hereafter arising" there had been inserted
the words "arising after the 26th August 1946", the Objection of
the United States would, 1think, hardly have been arguable. In my
opinion the conclusion to be reached would be the same in both.
A proper test in this case is to compare the Declarations of Accept-
ance of the two States and by so doing determine the scope of the

Court's jurisdiction covered by each. This 1 think leads to the
conclusion that the consensual agreement, the common ground,
between the Parties includes al1disputes arising after the effective
date of the United States' Declaration, namely the 26th August
1946. The Declarations of each State concur in comprising the
dispute in question within their scope.

The Second Objection should be dismissed.

1 agree with the decision of the Court and its reasons in uphold-
ing the Third Objection and in rejecting Part (b) of the Fourth
Objection.
(Signed) Percy C. SPENDER.

Bilingual Content

SEPARATE OPINION OFSIR PERCY SPENDER

In my opinion, as a result of the inclusion in the United States
Declaration of Acceptance of the Court's jurisdiction of its Reser-
vation (b) stipulating that the Declaration should not apply to
disputes with regard to matters which are essentially within the
domestic jurisdiction of the United States as determined by the
United States, the Court has no valid United States acceptance
of itsjurisdiction before it and is without competence to entertain
the Application of the Government of Switzerland. This conclusion

emerges from an examination of Objection 4 (a).
The Court upholds the Third Objection and holds that the
Application of the Swiss Government is inadmissible. Having
regard to this decision the Court being further of the opinion that
part (a) of the Fourth Objection is without object at the present
stage of the proceedings, finds it not necessary to adjudicate
thereon.
There is more than a little practical wisdom to recommend this
as a course to follow. The Objection presents issues of far reaching
significance. They concern not only the interests of the two States
engaged in the present proceedings but those of other States as
well. 1 would have preferred to adopt towards part (a) of the
Fourth Objection the same attitude as has the Court, but after
considerable reflexion 1 regret that this is not open to me.
To decide upon al1 other objections raised by the United States

to the Court's jurisdiction and not to deal with this Objection, is
to leave unanswered questions which strike at the very roots of
the Court's jurisdiction.
The United States has challenged jurisdiction on a number of
grounds. It has failed on its Objections 1, 2 and 4 (b), which are
objections to the jurisdiction of the Court. It has succeeded on
its Third Objection, but this has properly been treated by the
Court as a plea not to its jurisdiction but to theadmissibility of
the Application of the Swiss Government.

Before however adjudicating upon the Third Objection, the
Court, in my opinion, is obliged first to satisfy itself that othenvise
it has jurisdiction. It cannot be so satisfied unless and until it
rules upon Objection 4 (a).
The United States under this Objection has invoked the auto-

matic reservation contained in its Declaration of Acceptance. It
declines thereunder to submit to the jurisdiction of the Court the
matter of the sale and disposition of the shares in GAF, including
the passing of title. This declination applies tol1the issues raised
in the Swiss Application and Memorial, including, but not limited
52 OPINION INDIVIDUELLE DE SIR PERCY SPENDER
[T~aduction]
A mon avis, l'inclusion par les États-unis dans leur déclaration
d'acceptation de la juridiction de la Cour de la réserve), stipulant
que cette déclaration ne s'applique pas aux différendsrelatifsàdes
questions relevant essentiellement de la compétence nationale des
États-unis, telle qu'elle est fixéepar les États-unis, a pour effet
de rendre nulle l'acceptation par les Etats-Unis de la juridiction

de la Cour et celle-ci est incompétente pour connaître de la requête
du Gouvernement de la Suisse. Cette conclusionressort del'examen
de la partie a) de la quatrième exception.
La Cour retient la troisième exception et déclare irrecevable la
requêtedu Gouvernement suisse. Eu égard à cette décision,la Cour,
estimant, d'autre part, que la partiea) de la quatrième exception
est sansobjet au stade actuel de la procédure, ne juge pas nécessaire
de statuer sur ce point.

Il y a plus qu'une raison de sagesse pratique qui milite en faveur
de cette manière de voir. Cette exception soulève des questions
d'une très grande portée, qui n'engagent pas seulement les inférêts
des deux Etats en cause mais également ceux d'autres Etats.
J'aurais préféréadopter à l'égard de la partie a) de la quatrième
exception la mêmeattitude que la Cour; cependant, après avoir
longuement réfléchi,je regrette de ne pouvoir m'y rallier.
Prononcer sur toutes les autres exceptions des Etats-Unis qui
contestent la compétence de la Cour et non sur cette exception, c'est
laisser sans réponse des questions qui visent les fondements mêmes

de la cqmpétence de la Cour.
Les Etats-Unis ont contesté la compétence de la Cour pour
plusieursmotifs. Leurs première et deuxième exceptions et la partie
b) de leur quatrième exception, qui contestent la compétence de la
Cour, n'ont pas étéretenues. Ils ont, en revanche, obtenu satisfaction
au sujet de leur troisième exception, mais la Cour, à juste titre, a
considérécelle-ci comme visant non sa compétence, mais la rece-
vabilité de la requêtedu Gouvernement suisse.
Cependant, avant de prononcer sur la troisième exception, la
Cour est, àmon avis, tenue des'assurer au préalable età satisfaction
de droit qu'elle est, par ailleurs compétente. Or, il lui faut pour ce
faire statuer surlapartie a) de la quatrième exception.
Les Etats-Unis, dans cette exception, ont invoqué la réserve
automatique contenue dans leur déclaration d'acceptation, et aux
termes de laquelle ils refusent de soumettre à la compétence de la
Cour la question de la vente et de la disposition des actions de la
G. A.F., y compris la transmission d'un titre. Ce refus s'applique à

toutes les questions soulevées par la requête et le mémoire de
52 to, the Swiss-United States Treaty of Conciliation and Arbitration

1931 and the Washington Accord of 1946.

This objection was maintained in the United States' final con-
clusions and submissions.
Neither State to the present proceedings was willing to examine
too critically the vital questions posed by the Objection. The
Objection was handled tenderly by both and for understandable
reasons.
The issues involved raised their heads in the Norwegian Loans
case (-1.CJ.. ReportIg57 p,.9).Here also, each sidewalked discreetly
around them. Because in that case the validity of the reservation
of the Republic of France was not questioned by the Parties,
because indeed both Parties to the dispute regarded the reservation
as expressing their common will relating to the Court's competence,
the Court gave effect to the reservation as it stood and as the
Parties recognized it.

In the present case the validity of the United States reservation
was questioned by the Swiss Government. In the course of the
oral argument the Co-Agent for Switzerland submitted (inter alia) :
"As we have already said in our observations, so-called auto-
matic reservations are incompatible not only with the very prin-
cipleof compulsory arbitration (Article 36 (2) ...of the Statute),
but also with Article 36 (6) ...which gives the Court the power
to determine its own jurisdiction."

In the formal submissions of the Government of Switzerland
made at the end of the oral proceedings, it rather moved away
from this by contending that the Objection now being limited
in the present case to the right to dispose of and sel1 the shares
in GAF, it was in reality completely linked with the fate of the
United States Objection 4 (b) relating to the domain that is
reserved according to customary international law. 1 cannot agree.

If the reservation of the United States is invalid because of
incompatibility with Article 36 of the Statute of the Court, it
would be impossible for the Court to act upon it. More than this,
if itis invalid this may involve as in my opinion it does the total
invalidity of the United States Declaration of Acceptancerendering
it null and void.
The jurisdiction of the Court depends upon the Declarations of
Acceptance made by the Parties before it in these proceedings.
Whether it has or has not jurisdiction depends not only upon the
consensus of agreement to be derived from a comparison of the
two Declarations, but upon whether that consensus is compatible
with the provisions of the Court's Statute.Gouvernement suisse, y compris, entre autres, les questions soule-
vées par le Tfaité d'arbitrage et de conciliation de 1931 entre la
Suisse et les Etats-Unis et l'Accord de Washington de 1946.
Les Etats-Unis ont maintenu cette exception dans leurs conclu-
sions finales.
Aucundes États parties àla présenteinstancen'a tenu à examiner

d'une manière par trop critique les questions vitales que soulève
cette exception.Elle a étémaniée avec précaution par les deux Par-
ties, pour des motifs bien compréhensibles.
Les questions dont il s'agit se sont poséesen l'affaire relative à
Certainsem+runtsnorvégiens(C.I. J. Recueil 1957 ,. 9). Là encore,
chaque Partie a contourné l'obstacle avec prudence. Parce que,
dans cette affaire, la validité de la réserve de la République fran-
çaise n'a pas étécontestée par les Parties, parce que les deux Parties
au différend ont mêmeconsidéréla réserve comme exprimant leur
volonté commune au sujet de la compétence de la Cour, celle-ci
a donné effet à la réserve telle qu'elle existait et que les Parties la

reconnaissaient.
Dans la présente instance, la validité de la réservedes États-unis
a étécontestée par le Gouvernement suisse. Au cours de la procédure
orale, le CO-agentde la Suisse a fait valoir notamment ce qui suit:
((Comme nous l'avons déjàdit dans nos observations, de telles
réservesdites automatiques sont incompatibles non seulement avec
le principe mêmede l'arbitrage obligatoire,article6,paragraphe 2,
du Statut, mais aussi avec l'article 36, paragraphe 6, du Statut,
qui donne à la Cour la compétencede déterminersa propre com-
pétence.))

Dans les conclusions formelles présentéespar le Gouvernement

de la Suisse à la fin des plaidoiries, celui-ci s'est quelque peu éloigné
de ce point de vue en soutenant que l'exception, maintenant limitée
en l'espèce au droit de disposer des actions de la G.A. F. et de les
vendre, était en réalité entièrementJiée au sort réservé àla partie b)
de la quatrième exception des Etats-Unis, visant le domaine
réservé conformémentau droit international coutumier. Je ne puis
partager cet avis.
Si la réserve des États-unis était nulle en raison de son incom-
patibilité avec l'article 36 du Statut de la Cour, il serait impossible
à la Cour de l'appliquer. Mieux encore, sa nullité pourrait entraîner,
comme c'est àmon avis le cas, la nullité de l'ensemble de la déclara-

tion d'acceptation des Etats-Unis, qui deviendrait alors nulle et
non avenue.
La compétence de la Cour dépend des déclarations d'acceptation
faites par lesParties à la présente procédure. La question de savoir
si elle est ou non compétente dépend non seulement de la mesure
dans laquelle les deux déclarations, une fois comparées,apparaissent
coïncider,mais de la compatibilité mêmedes points qui, en elles,
coïncident avec les dispositions du Statut de la Cour.

53 Is, then, the United States reservation (b) compatible with
Article 36 ofthe Statute ?And if not, what are the legalconsequences
which flow from this incompatibility?
The Court can only function within its Statute and within the
limits of its authority. It cannot depart from the terms of the
Statute.
If the reservation of the United States is inconsistent with the
Statute, or if the result of its inclusion in its Declaration is to
render the latter wholly inoperative as an acceptance of the Court's
jurisdiction, theCoizrt, in my opinion, is bound so to declare.
Article 36 (6) of the Statute provides that in the event of a
dispute as to whether the Court has jurisdiction the matter shall
be settled by the decision of the Court. But the United States
reservation (b) empowers the United States exclusively on its own
determination to Say in the event of a dispute whether the Court
has or has not jurisdiction. In the event of a dispute as to the
Court's jurisdiction the matter is not settled by the decision of the

Court unless the United States so agrees. It determines whether the
matter shall or shall not be settled by the Court. But it is the Court
and the Court alone that under the Statute is to decide its juris-
diction. It is not competent for a State to reserve to itself a right
to withdraw from the Court inthe event of a dispute as to whether
the Court has jurisdiction in a particular case, the very matter
which by virtue of Article 36 (6) shall be settled by the decision
of the Court.
The United States in this case has invoked its reservation and
so sought to prevent the Court from exercising the authority given
to it and discharging the duty imposed upon it by its Statute.
This reservation may be used by the United States to prevent
the Court from discharging its function and to exclude from the
Court's competence at any time any dispute with regard to any
matters which the United States itself determines as essentially
within its domestic jurisdiction.
Whether any jurisdiction at any time resides in the Court in
respect of any dispute; whether there is any obligation upon the

United States to accept the jurisdiction of the Court on any dispute,
depends upon the will or subjective determination of that State,
a determination that may be made even after the dispute has
been brought before the Court.
This reservation is clearly inconsistent and incompatible with
Article 36 (6) of the Statute and with the concept of compulsory
jurisdiction and reciprocal obligation contemplated in Article 36
(2) thereof. An "obligation" to recognize the jurisdiction of the
Court, the existence or extent of which "obligation" in respect to
any particular dispute is a matter which can be determined by
the State concerned, is not a legal obligation at all.
It is in no way relevant to assume, as assume 1 do, that the
United States would seek to use its reservation with prudence and
reason. Or, la partie b) de la réserve des États-unis est-elle compatible
avec l'article 36 du Statut? Et, sinon, quels sont les effets juridiques
de cette incompatibilité?
La Cour ne peut agir que conformément à son Statut et dans les

limites de l'autorité qu'il lui confère. Elle ne peut s'écarter des
termes du Statut.
Si la réservedes États-Unis est incompatible avec le Statut ou si
son inclusion dans leur déclaration a pour effet de rendre cette
dernière totalement inefficaceen tant qu'acceptation de la juridiction
dela Cour, la Cour est, à mon avis, tenue de le dire.
L'article36, paragraphe 6, du Statut dispose qu'en cas de contes-
tation sur le point de savoir si la Cour est compétente, la Cour
décide.Or, la partie b) de la réserve des Etats-Unis donne à ceux-ci
la faculté de décider eux-mêmesexclusivement,en cas de différend,
sila Cour est ou non compétente. En cas de contestation sur lepoint

de savoir si la Cour est compétente, la Cour ne décide qu'avec
l'accord des Etats-Unis. Ceux-ci définissent si oui ou non la Cour
doit décider. Or, c'est la Cour, et la Cour seule, qui, aux termes de
Statut, doit décider de sa compétence. Il n'appartient pas à un
État de se réserver le droit, en cas de contestation sur le point de
savoir si la Cour est compétente pour connaître d'un différend
particulier, de soustraire à la compétence de la Cour la question
mêmedont l'article 36, paragraphe 6, dispose que la Cour décide.

Les États-unis ont, en la présente instance, invoqué leur réserve
et, par là, tenté d'empêcher la Cour d'exercer l'autorité que lui

confère son Statut et de s'acquitter de l'obligation qu'il lui impose.
Cette réserve pourrait être invoquée par les États-unis pour
empêcherla Cour de remplir sa fonction et pour exclure à n'importe
quel moment de sa compétence tout différend relatifà toutequestion
que les Etats-Unis définiront eux-mêmescomme relevant essentiel-
lement de leur compétence nationale.
Le point de savoir si, à aucun moment, la Cour a une compétence
quelconque àl'égardde n'importe quel différendet si les Etats-Unis
sont tenus par une obligation quelconque d'accepter la juridiction
de la Cour à l'égardde n'importe quel $fférend dépendde la volonté
ou de la décision subiective de cet Etat. Cette décision eut être
prise mêmeaprès que'le différenda étésoumis à la Cour. I

Cette réserve est clairement contraire à l'article 36, paragraphe 6,
du Statut et à la notion de juridiction obligatoire et d'obligation
réciproque, définieau paragraphe 2 dudit article, et incompatible
avec ces dispositions. Une ((obligation »de reconnaître la juridiction
de la Cour, dont l'existence et l'étendue peuvent, à l'égardde tout
différend particulier, être définies par 1'Etat intéressé, n'a rien
d'une obligation juridique.
11n'est aucunement pertinent de présumer, comme d'ailleurs je
le fais, que les Etats-Unis s'efforceraient d'invoquer leur réserve
avec prudence et dans des conditions raisonnables. In my opinion reservation (b) of the United States is invalid. If
so, the Court is unable to give any effect to it.

What are the consequences of its invalidity?
The answer seems to me dependent upon the enquiry whether the
reservation, either wholly or in part, is severable from the rest of
the Declaration.
1s it permissible to discard the reservation altogether or the
words "as determined by the United States", leaving what remains
of the Declaration valid and operative?
The answer is clearly, 1 would think, "no", and for the reason
that the reservation, of which the words "as determined by the
United States of America" are the core, is not a mere term but an
essentialcondition of the United States Acceptance. The reservation
could be described as a critical reservation without which the
Declaration of Acceptance would never have been made. This
seems reasonably self evident. It is not in my opinion permissible to
have recourse to the debate in the United States Senate when the
Declaration was before it; nor, were it permissible, would it be
necessary or profitable. The will and the intent of the United States
is to be found in its expression thereof in its Declaration ofccept-
ance and nowhere else. The meaning of the reservation, automatic

in character, is clear. To sever this reservation or the words "as
determined by the United States" and to hold that the Declaration
after severance represents the will and intent of the United States
would be to ignore the proper construction to be accorded to the
Declaration as a whole. To do so would impose upon the United
States an acceptance quite different to that which it made. It
would have no warrant in law. In my opinion the reservation is
a vital and unseverable condition of the Declaration of Acceptance.
If it is bad, neither it nor any part of it can be severed from the
whole. If it isinvalid, as in my opinion it is, the whole Declaration
is nul1 and void.

In my opinion this concludes the matter. The Court is without
jurisdiction.
Certain other possible constructions of the reservation should
however be considered.
May it not be read as implying that the determination of the
United States must be "reasonable" and so Save it from any
inconsistency with Article 36 (6)?
So to read the reservation would require us to disregard its terms.
That is precisely one of the things the reservation was intended to
remove from any jurisdiction of or any review by the Court. The

history of the reservation would itself prove this abundantly. But
there is no need to go beyond the words of the reservation itself.
There was excefitedbythe United States from the field of its accept-
ance of the Court's jurisdiction any dispute which it-not some
55 A mon avis, la partie b) de la réserve des États-unis est nulle.
S'il en est ainsi, la Cour ne peut, en aucune manière, lui donner un
effet.
Quelles sont les conséquences de la nullité de la réserve?
La réponse me semble dépendre de celle que l'on donne au point

de savoir si la réserve peut, soit dans sa totalité, soit en partie, être
détachée du reste de la déclaration.
Est-il loisible de négliger complètement la réserve, ou la clause
((telle qu'elle est fixée par les États-unis »,en laissant toute sa
validité et son efficacitéau reste de la déclaration?
Selon moi, la réponse est évidemment ((non », et pour le motif
que la réserve, dont les mots «telle qu'elle est fixéepar les Etats-
Unis d'Amérique » constituent le noyau, n'est pas une simpleclause
mais une conditon essentielle de l'acceptation des Etats-Unis. Elle
pourrait êtredéfinie commeétantuneréserveessentielle sanslaquelle
la déclaration d'acceptation n'aurait jamais été faite. Cela paraît
suffisamment évident. A mon avis, il n'est pas loisible d'invpquer
le débat auquel a donnélieu cette déclaration au Sénat des Etats-

Unis, lorsqu'il en a étésaisi;et, le fût-il, que ce ne serait ni nécessaire
ni utile. C'est dans'~xpression qu'elles ont reçue dans la déclaration
d'acceptation des Etats-Unis, et nulle part ailleurs, qu'il faut
rechercher la volonté et l'intention de ceux-ci. Le sens de la réserve,
de caractère automatique, est clair. Détacher de la déclarationTcette
réserveou simplement les mots «telle qu'elle est fixéepar les Etats-
Unis »,et dire que la déclaration ainsi amputée représente la volonté
et l'intention des États-unis serait méconnaître l'interprétation
qu'il convient de donner à leur déclaration dans son ensemble. Ce
faisant, on imposerait aux États-Unis une acceptation absolument
différente de celle qu'ils ont formulée. Cette interprétaton n'aurait
aucun fondement en droit. A mon avis, la réserve constitue une
condition vitale et inséparable de la déclaration d'acceptation des
États-unis. Si elle est mauvaise, on ne peut, ni dans sa totalité,

ni en partie, la détacher du reste. Si elle est nulle, comme c'est mon
avis, alors toute la déclaration est nulle et non avenue.
Ces considérations sont, à mon avis, concluantes. La Cour est
incompétente.
Il faut cependant faire état de certaines autres interprétations
possibles de la réserve.
Ne pourrait-on l'interpréter comme indiquant implicitement que
la décisiondes États-unis doit être «raisonnable »et ainsi luiéviter
toute incompatibilité avec l'article 36, paragraphe 6?
Une telle interprétation de la réserve nous amènerait à négliger
ses termes mêmes.C'est précisément l'une des chosesque la réserve
a eu pour objet desoustraire à la compétenceou à la revision de la
Cour. L'histoire dela réserveelle-mêmele montrerait abondamment,
mais il n'est pasnécessaire d'aller au-delà des termes de la réserve

elle-même.Les Etats-Unis ont excefté du domaine de leur accep-
tation de la juridiction de la Cour tout différend qu'ils ont - et
55other body-determined as essentially within its own domestic
jurisdiction, and irrespective of whether or not this Court should
think the exercise by the United States of its sovereign power in
so determining was or was not reasonable or the circumstances
such as would make it reasonably possible for it so to determine.
The United States, and it alone, was the sole judge of its action
and/or of its reasonableness.
In the Norwegian Loans case, Judge Read, when dealing with
the terms of a somewhat comparable French reservation-"disputes
relating to matters which are essentially within the national juris-
diction as understoodby the Government of the French Republic"
-construed it as permitting the Court to review the reasonableness
of the circumstances under which the reservation was invoked.
Whether the circumstances were such that it would be reasonably
possible for Norway (relying in that case on the principle of

reciprocity) to reach an understanding that the dispute was essen-
tially national, would be a question for the Court to determine.
But if those circumstances existed the conclusion reached by the
State could not be questioned. In other words, whether the cir-
cumstances were such was not for a Government but for the
Court. If, however, such circumstances existed, the conclusion
of the Government concemed determined the matter (I.C.J.
Reports 1957, P. 93).

It is not necessary to examine the reasons of that distinguished
Judge in reaching this view. 1 think it reasonably clear that, had
he been faced with the reservation in this case, he would have
come to a quite different conclusion. The learned Judge was, of
course, dealing with an automatic reservation couched in different
terms. Had he felt compelled to interpret.\its words as meaning
that the relevant Government had an arbitrary power to settle
any question of jurisdiction, then it would bave been necessary

for him to conclude that the Declaration of France was nul1 and
void as contrary to Article 36 (6)of the Statute. "It isinadmissible,
by a process of interpretation, to rewrite the Clause in question
as if it read 'disputes relating to matters as regards which the
Government ... has declared that it understands that they are
essentially within the national jurisdiction'." (P. 95.) That would
have conferred an arbitrary power. The reservation in this case
is at least as strong. The word "determined" is one of very definite
content.
In my opinion there is no room whatever for construing the
United States reservation by implying into it a concept that the
determination must be reasonable or that it must not be unrea-
sonable.
There remains to be considered whether the reservation should
be interpreted in the sense that the Court has jurisdiction to
decide whether it is invoked in good faith.

56eux seuls - défini comme relevant de leur propre compétence
nationale et en dépit de ce que la Cour poprrait penser sur le carac-
tère raisonnable de l'exercice que font les Etats-Unis de leur pouvoir
souverain en prenant cette décision, ou des circonstapces qui leur
permettraient de la prendre raisonnablement. Les Etats-Unis, et
eux seuls, sont seuls juges de leurs actes etdu caractère raisonnable
de ceux-ci.
Dans l'affaire des Emprunts norvégiens,le juge Read, examinant

les termes d'une réserve française assez comparable - les diffé-
rends ccrelatifs à des affaires qui relèvent essentiellement de la
compétence nationale telle qu'elle est entenduepar le Gouvernement
de la République française ))-, a interprété cette réserve comme
permettant à la Cour de vérifierle caractère raisonnable des circons-
tances dans lesquelles la réserve a étéinvoquée. Il appartiendra
à la Cour de dire si les circonstances étaient telles qu'il serait
raisonnablement possible pour la Norvège (invoquant dans ce cas le
principe de réciprocité)de conclure que le différend relève entière-

ment de la compétence nationale, mais si de telles circonstances
existaient, la conclusion de 1'Etat ne saurait être mise en question.
En d'autres termes, il n'appartenait pas à un Gouvernement, mais
à la Cour, de déterminer si les circonstances étaient telles. Si
néanmoins de telles circonstances existaient, la conclusion du
Gouvernement intéressé était déterminante (C. I.J. Recueil 1957,
P 93).
Il est inutile d'examinerles raisons qui ont incitécet éminentjuge
à formuler ce point de vue. Il me semble raisonnablement clair que,

s'il avait étéen présence de la réserve invoqu5e en l'espèce,il serait
arrivé à une conclusion toute différente. Evidemment, le juge
parlait d'une réserve automatique rédigée entermes différents. S'il
s'était senti obligéd'en interpréter les termes comme signifiant que
le Gouvernement intéressé avait un pouvoir arbitraire de régler
toute question de compétence, alors il lui aurait fallu conclure que
la déclaration française était nulle et non avenue comme contraire
à l'article 36 (6) du Statut.((Il est inadmissible que par voie d'inter-
prétation on rédige à nouveau la clause en question, comme si elle

disait ((différendsrelatifsà des affaires au sujet desquelles leGouver-
((nement ..déclarequ'il entend qu'elles relèvent essentiellement de
la compétencenationale 1))(P. 95.) Cela aurait conféréun pouvoir
arbitraire. La réserve en l'affaire actuelle est au moins aussi nette.
Le terme (fixé ))a un sens très précis.

A mon avis, il n'est pas possible d'interpréter la réserve des
États-unis en y introduisant implicitement une notion d'après
laquelle la décisiondoit êtreraisonnable ou qu'elle ne doit pas être

déraisonnable.
Reste à examiner s'il faut interpréter la réserve ence sens que la
Cour est compétente pour décider si cette réserve a étéinvoquée
de bonne foi.
56 This reservation left the question of jurisdiction specifically
to be "determined by the United States of America and by it
alone. It cannot be construed as meaning that the words inserted
by the United States as a reservation from the Declaration of
Acceptance should be read as containing the words "provided it
is so determined by the United States of America in good faith".
There is no room for redrafting the reservation and giving it an
entirely different meaning to that which its words bear and which
they clearly enough were intended to bear.
To do so would involve rewriting proviso (b) of the United States
Declaration of Acceptance, would distort the meaning of the Decla-
ration by imposing a quite different reservation upon the United
States to that inserted by it as a condition of its acceptance.
There is no room for questions of abuse of power or good faith
or bad faith in relation to a determination by the Government

concerned that the dispute is within its domestic jurisdiction.

In my opinion, the reservation of the United States proviso (b)
to its Declaration of Acceptance is invalid. Neither it nor any
part of itcan be severed therefrom since it is of the essence of the
Declaration of Acceptance. The Declaration is incompatible with
any compulsory legal obligation and with Article 36 (6). It has
no legal force as a declaration under Article 36 (2). Accordingly, 1
am compelled to the conclusion that the United States Declaration
of Acceptance is, and has from its inception been, nul1 and void.
The United States cannot sue or be sued in this Court on the
basis of its Declaration. It has, in short, never legally submitted
to the jurisdiction of the Court.

In the result 1 am of opinion that the Court has no jurisdiction
to deal with the Application of the Government of Switzerland
except so to declare. Since however the majority of the Court

take the view that the objection should not be decided at the
present stage of the proceedings, 1 deem it my duty to express
my views on the other objections put fonvard by the United States.

First Objection

The United States Declaration of Acceptance of the compulsory
jurisdiction of the Courtis limited to disputes "hereafter ansingJ'-
that is arising after the 26th August 1946.Disputes which had there-
tofore arisen are accordingly excluded.
The purpose and intent of such a provision is clear. It accepts
the Court's jurisdiction on disputes arising after the relevant date.
It excludes from it al1 disputes which have arisen before the
27th August 1946. If a dispute existed before this date, it matters
not in what form it may subsequently be presented to the Court
or what the legal issues directly connected with and relevant to the

57 Cette réserve a expressément réservé aux États-~nis et à eux
seuls le soin de fixer la question de compétence. Elle ne,peut
s'interpréter comme signifiant que les mots inséréspar les Etats-
Unis à titre de réserve dans leur déclaration d'acceptation doivent
se lire comme, contenant les mots ((pourvu que cette décision soit

prise par les Etats-Unis de bonne foi ».Il n'y a pas place pour une
rédaction nouvelle de la réserve, lui donnant une signification tout
à fait différente de celle que comportent ses termes et que les
rédacteurs ont assez clairement entendu leur donner.
Agir de la sorte impliquerait que l'on,écriveà nouveau la clause
b) de la déclaration d'acceptation des Etats-Unis en déformant sa
signification en imposant aux Etats-Unis une réserve absolument
différente de celle qu'ils ont inséréecomme condition de leur accep-
tation. Il n'est pas davantage possible de songer à un abus de
pouvoir ou àla bonne foi ou àla mauvaise foi àpropos de la décision
par un Gouvernement intéressé que le différend relèvede sa compé-
tence nationale.
A mon avis, la réserve de la clause b) dans la déclaration des
États-unis est nulle. Elle ne peut, ni en totalité ni en partie, être

détachée de la déclaration d'acceptation puisqu'elle en constitue
l'essence. La déclaration est incompatible avec toute obligation
juridique valable et avec l'article 36, paragraphe 6, et n'a pas farce
juridique en tant que déclaration en vertu de l'article 36 (2). En
conséquence?je suis forcé de conclure que la déclaration d'accep-
tation des Etats-Unis-est et a toujours éténulle et non avenue
depuis l'origine. Les Etats-Unis ne peuvent comparaître comme
demandeur ou comme défendeur devant la Cour sur la base de
cette déclaration. Bref, ils ne se sont jamais juridiquement soumis
à la compétence de la Cour.
Il s'ensuit que selon moi la Cour n'est pas compétente pour
connaître de la requêtedu Gouvernement suisse, sauf pour se pro-
noncer en ce sens. Mais puisque la majorité de la Cour est
d'avis qu'il ne convient pas de se prononcer sur cette exception

au stade actuel des débats, j'estime qu'il est de mon devoir d'ex-
primer mon point de vue sur les autres exceptions soulevées par
les Etats-Unis.
Première exception

La déclaration par laquelle les États-unis acceptent la juridic-
tion obligatoire de la Cour se limite aux différends qui s'élèveront
à l'avenir »,c'est-à-dire après le 26 août 1946. Les différends qui
se sont élevésantérieurement se trouvent donc exclus.
Le but et l'intention d'une telle clause sont évidents. Elle accepte
la compétence de la Cour pour les différends postérieurs à la date
en question. Elle exclut tout différend antérieur au 27 août 1946.
Si un différend existait avant cette date, peu importe sous quelle
forme il peut êtreprésenté ultérieurement à la Cour, ou ce que
peuvent êtreou devenir les questions juridiques directement liéesdispute rnay be or become, or what the nature of the relief claimed,
that dispute is not within the competence of the Court.
Such a provision, if it is not to be interpreted in a manner to
exceed the intention of the State accepting the jurisdiction of the
Court, should receive a broad construction.
A "dispute" within the meaning of the provision need not be
spelt out or defined with legal exactitude or particularity. It is
enough if its subject-matter anditsnature are identifiable. A dispute
rnay anse long before it crystallizes into its component parts or
reveals all its different facets. No special formality is necessary.
It need not anse in the course of diplomatic negotiations. It rnay
do so independently thereof and rnay precede negotiations.

Nor is it a condition precedent to a "dispute" arising that one
State must indicate that it intends to resort to international judicial
or arbitral procedure or action unless its claim is satisfied. A State
party to a dispute rnay temporarily abandon its contention; rnay
subsequently revive it and then decide to seek a remedy by judicial
or other proceedings or action.

A dispute rnay lie dormant for years. The decision to take action
andthe nature of the action to betaken, the forum to be chosen, or
the remedy to be sought are not decisive as to whether a dispute at
any aven time exists or existed.

A dispute may, as not infrequently happens, enter upon a new
phase. An entirely separate dispute rnay of course anse between
the parties with which the existing dispute is only casually con-
nected. But if the substance ofthe dispute remains the same, the fact

that it has entered upon a new phase or that other issues directly
connected with and relevant to the dispute in which the parties
are also in disagreement are subsequently added or appear, or that
new claims for relief are presented, cannot alter the problem such
as is here presented to the Court. Were it otherwise, legal ingenuity
would usually be able to transmute a dispute which clearly enough
was beyond the jurisdiction of the Court, into one within its
competence. The Court should concern itself with substance, not
form.

"Disputes" within the meaning of the United States Declaration
must bear the same interpretation as the sarne word appearing in
Article 36 of the Statute, with which it is CO-terminousin meaning.
A State submitting to the jurisdiction of the Court is entitled to
place reliance upon the judicial pronouncements of this Court and
its predecessor, as to the meaning to be given to this word when
settling and agreeing upon the terms of its Declaration of Accept-

ance.
58ou se rapportant au différend,oula nature de la réparation réclamée,
ce différend ne relèvepas de la compétence de la Cour.

Cette clause,ppur ne pas être interprétéed'une façon qui dépasse
l'intention de 1'Etat acceptant la juridiction de la Cour, doit être
prise dans un sens large.
Un ((différend))selon le sens de la clause n'a pas besoin d'être
énoncé oudéfiniavec une exactitude ou des caractéristiques parti-
culièresdu point de vue juridique. Il suffit que son objet et sa nature
soient identifiables. Un différend peut se poser bien avant de se
cristalliser en ses élémentscomposants,ou de révélertous ses aspects
différents. Aucune formalité particulière n'est nécessaire. II n'est
pas indispensable qu'il se produise au cours de négociations diplo-

matiques, il peut s'élever indépendamment d'elles et mêmeles
précéder.
Le fait qu'un État doit indiquer qu'il a l'intention de recourir
à une procédure ou à une action judiciaire ou arbitrale intematio-
nale si sa réclamation n'est pas satisfaite ne constit- pas une
condition préalable à l'existence d'un (différend ))Un Etat partie
à un différend peut temporairement abandonner ses prétentions,
les reprendre ensuite et décider alors de chercher un recours dans
une procédure ou une action judiciaire ou d'un autre caractère.
Un différendpeut demeurer en sommeil pendant des années. La

décisionde recourir à une action et la nature de l'action à entre-
prendre, l'instance à choisir ou le recours à rechercher ne peuvent
servir à déterminer catégoriquement si un différend existe ou
existait à un moment donné.
Un différendpeut, comme il advient souvent,prendre unenouvelle
tournure. 11peut bien entendu s'éleverentre les parties un différend
absolument distinct auquel le différendexistant n'est que fortuite-
ment lié. Mais si le fond du différenddemeure le même,le fait qu'il
est entré dans une nouvelle phase ou que d'autres questions direc-
tement liéeset se rapportant au différend à propos desquelles les

parties sont également en désaccord se sont ajoutées ou révélées
ultérieurement, ou que de nouvelles réclamations en réparation se
trouvent soumises, ne saurait modifier le problème tel qu'il est
présentéici devant la Cour. S'il en était autrement, l'ingéniosité
juridique serait généralement à même de faire en sorte qu'un
différend qui, d'une façon assez évidente, était en dehors de la
compétence de la Cour, relève de cette compétence. La Cour doit
tenir compte du fond et non de la forme.
Les K différends » dans le sens de la déclaration des États-unis
doivent être interprétésde la mêmefaçon que le mêmeterme utilisé

àl'article 36 du Statut, dont ilest synonyme. Un Etat se soumettant
à la juridiction de la Cour est en droit de placer sa confiance dans
les décisionsjudiciaires de celle-ci et de celle qui l'a précédéquant
au sens à donner à ce mot en décidant des termes de sa déclaration
d'acceptation. The Permanent Court of International Justice and this Court
have on a number of occasions considered the meaning of this
word. In my opinion it is not necessary to go beyond the pronoun-
cement of the Permanent Court of International Justice in the
Mavrommatis Palestine Concessions (P.C.I.J., Series A, No. 2 at
p. 14), "a dispute is a disagreement on a point of law or fact, a
conflict of legal views or interests between two persons". See, too,
German Interests in Polish Upper Silesia (P.C.I.J., Series A, No. 6
at p. 14); Chorz6w Factory Case (P.C.I.J., Series A, No. 13 at
pp. IO and II); Asylum Case (I.C.J. Reports 1950, at p. 403).
Nothing which appears in the Right of Passage overIndian Territory
(I.C.J. Reports 1957) qualifies this definition.

In the light of these observations, did then the dispute, the
subject of the litigation,nse before or after the 26th August 1946?
To provide the correct answer it is necessary to determine what

the dispute is.
The dispute "relates" to an alleged obligation of the United
States to restore to Interhandel certain assets within the United
States. These assets were the shares in G.A.F. But to Say that the
dispute "relates" to a certain subject-matter does not state or
identify the nature of the dispute.
There could not be other than complete agreement with the view
expressed in the Court's judgrnent that facts and situations which
lead to a dispute must not be confused with the dispute itself.
Neither should the "dispute" be confused with the "claim" or
claims for relief, which normally may be expected to follow the
dispute itself, or with the subject-matter of each claim. The present
case is an example of the need in particular to distinguish between
the "subject-matter of the dispute", the "dispute" andthe "claim".

The relevant factsin the present case which constitute the dispute
have not altered since and October 1957when the SwissApplication
was filed. Yet since the date thereof a number of new claims have

been put fonvard. Nonetheless, the "dispute" has remained the
same.
In the Swiss Application the dispute is referred to in the pream-
bular paragraph as having ansen "relating" to the restitution
bythe United States of the assets above mentioned. The Application
then proceeds to set out the facts on which the Application is
founded. It refers to "disputeJ' throughout in the singular. It
states inter alin that "the dispute" concerns the interpretation of
a treaty and questions of international law and that its settlement
"involves interpretation of the Washington Accord and an examin-
ation of questions ofinternational law". Nowhere in the Application,
except in so far as is to be de termine^ from the facts stated, is
"the dispute" defined. To state that the dispute "relates to, etc."
does not itself indicate or determine its nature. La Cour permanente de Justice internationale et la présente
Cour ont déjà examiné à plusieurs reprises le sens de ce mot. A

mon avis, il est inutile d'aller au-delà de la décision de la Cour
permanente de Justice internationale à propos de l'affaire des
ConcessionsMavrommatis en Palestine (C. P. J. I., SérieA, no 2,
p. 14) selon laquelle « un différendest un désaccord sur un point de
droit ou de fait, une contradiction, une opposition de thèses juridi-
ques ou d'intérêts entre deux personnes ». Voir également affaire
relative à Certains intérêts allemands en Haute-Silésie polonaise
(C. P. J. I., Série A, no 6, p. 14); affaire de l'Usine de Chorzbw
(C. P. J. I., SérieA, no 13, pp. IO et II); affaire du Droit d'asile

(C. I. J. Recueil 1950, p. 403). Rien de ce qui ressort de l'affaire du
Droit de passage sur territoire indien (C. I. J. Recueil 1957) ne
modifie cette définition.
Cela dit, le différend actuel est-il donc né avant ou après le
26 août 1946 ?
Pour répondre comme il convient à cette question, il est néces-
saire de définir d'abord la nature de ce différend.
Le différend ((serapporte » à la prétendue obligationqui incombe-
rait aux États-unis de restituer à 1'Interhandel certains avoirs se

trouvant dans ce pays. Il s'agit, enl'espèce, desactions de la G.A.F.
Mais dire que le différend «se rapporte » àtel ou tel objet, ce n'est
pas énoncer ni définirsa nature.
On ne peut que se ranger sans réserve au point de vue exprimé
par la Cour dans son arrêt, à savoir que les faits et les situations
qui ont mené à un différend ne sauraient êtreconfondus avec le
différend lui-même. II ne faut pas non plus confondre le « diffé-
rend » avec la ou les (réclamations » en réparation, que l'on peut
normalement présumer suivre le différend lui-même,ni avec l'objet

de chaque réclamation. L'affaire actuelle est un exemple de cette
nécessité dedistinguer en particulier entre ((l'objet du différend »,
le ((différend » et les ((réclamations ».
Les faits pertinents qui, en l'espèce, constituent le différend ne
se sont pas modifiés depuis le 2 octobre 1957, date à laquelle la
requête de la Suisse a étédéposée.Cependant, depuis la date de
cette requête, un grand nombre de nouvelles réclamations ont été
formulées. Néanmoins, le « différend » est resté le même.

Le préambule de la requêtesuisse dit du différend qu'il « se rap-
porte »à la restitution par les Etats-Unis des avoirs susmentionnés.
La requêtedécrit ensuite les faits sur lesquels elle est fondée. Par-
tout, elle fait mention du «différend »au singulier. Elle dit, notam-
ment, que le ((différend »a pour objet l'interprétation d'un traité et
despoints de droit international et que sa solution (implique l'inter-
prétation de l'Accord de Washington et l'examen de points de droit
international 1).Nulle part la requête ne définit le (différend ))
autrement que par la description qu'elle donne des faits. Dire que

le a différend se rapporte à... » n'indique ni ne définit en soi la
nature de celui-ci. Although two different claims for relief were put forward in the
Application, Switzerland itself only refers throughout to one

dispute which it had sought to have settled first by negotiation, then
by seeking recourse to arbitration, etc., and finally by application
to this Court.
It is that dispute-whatever it was-that the Application asks
the Court either to determine itself on the merits, or, alternatively,
to declare is one fit for submission for "judicial settlement, arbitra-
tion or conciliation".
What then, on a proper examination of the facts, was the nature
of the dispute to which Switzerland is referring?
It is, 1 think, clear enough that it was, whether or not Inter-
handel, the nominal owners of the shares in G.A.F. at the time of
vesting, was Swiss-owned or German-owned or controlled.

This, 1 think, is borne out by the correspondence and documents
which passed between the Parties, and is supported by the Appli-
cation itself and the Memorial.
The fundamental Swiss contention, in whatever different forms

it seeks relief, or whenever a demand for restitution was made, is,
that Interhandel was Swiss (neutral),not German (enemy). It iç
on the resolution of this dispute that any obligation by the United
Statesto make restitution basically depends.

Whether the dispute were determined by this Court on its merits,
or dealt with by arbitration or conciliation, the dispute-as distinct
from the forms in which relief is claimed, which have 1 think too
greatly controlled the decision of the Court-is the same. And this
remains so whether the Swiss Government, in seeking to have the
shares restored to Interhandel, calls in aid ArticleIV of the Wash-
ington Accord, the decision of the Swiss Authority of Review, or
the Arbitration and Conciliation Treaty of 1931.

If the dispute did not arise after 26th August 1946, it is not in
my opinion competent for the Court to deal with that dispute in

any way either on its merits or by declaring that that dispute "is
fit for submission for judicial settlement, arbitration or concilia-
tion". Such a dispute is wholly outside the jurisdiction of the Court.
There are 1 think certain signposts before and after the 26th Au-
gust 1946 that give direction to our enquiry.

(a) The main, if not the only substantial reason why the United
States repeatedly maintained that the "blocking" of Interhandel in

Switzerland should be continued was because its principal asset
was its participation in G.A.F. then being administered by the
U.S. Alien Property Custodian. This was known to the Swiss
authorities from at least July 1945 (Exposéof Swiss Compensation Bien que deux réclamations différentes en réparation soient for-
muléesdans la requête,la Suisse elle-mêmene fait jamais état que
d'un seul différend qu'elle a tenté de réglerd'abord par des négo-
ciations, ensuite en recourant à l'arbitrage, etc., et finalement en
déposant une requête auprèsde la Cour.
C'est ce différend, quel qu'il soit, que la requête demande à la
Cour de trancher elle-mêmequant au fond ou, subsidiairement, de

tenir pour étant de nature à êtresoumis à la (juridiction, à l'arbi-
trage ou à la conciliation».
Quelle est donc la nature du différend dont la Suisse fait état,
telle qu'elle ressort d'un examen sérieux des faits?
11est, à mon avis, bien évident que c'est le point de savoir si,
oui ou non, l'Interhande1, propriétaire nominal des actions de la
G. A.F. à l'époquedu séquestre,était propriétésuisse ou allemande
ou sous contrôle allemand.
Ce point de vue est, selon moi, confirmé par la correspondance
et les documents échangésentre lesParties et soutenu parla requête
elle-mêmeet le mémoire.

Quelle que soit la forme souslaquelle la Suisseréclameréparation
ou l'époque à laquelle elle a présentéune demande en restitution, sa
thèse essentielle est que 1'Interhandel était suisse (neutre) et non
allemande (ennemie). C'est du règlement de ce différendque dépend
essentiellement toute obligation pour les Etats-Unis de se prêter
à une restitution.
Qu'il soit tranché par la Cour quant au fond ou réglépar l'arbi-
trage ou la conciliation, le différend - par opposition aux formes
sous lesquelles la réparation est réclaméeet qui, selon moi, ont trop
fortement influencé la décision de la Cour - est le même.Cela
reste exact, quel que soit le texte invoquépar le Gouvernement de
la Suisse en vue d'obtenir la restitution des actions en question à

1'Interhandel: article IV de l'Accord de Washington, décision de
l'Autorité suisse de recours ou Traité d'arbitrage et de conciliation
de 1931.
Si le différend n'est pas né aprèsle 26 août 1946, à mon avis la
Cour n'est aucunement compétente pour en connaître, que cesoit
en statuant quant au fond, ou en déclarant qu'il est (de nature à
être soumis à la juridiction, à l'arbitrage ou à la conciliation ».
Pareil différend échappe entièrement à la compétence de la Cour.
On peut, me semble-t-il, dégager, avant et après le 26 août 1946,
certains points de repère qui nous permettront d'orienter notre
enquête.

a) Le motif principal, sinon le seul important, pour lequel les
États-unis ont fait valoir à plusieurs reprises que le ((blocage » de
I'Interhandel en Suisse devait êtremaintenu est lefait quel'essentiel
des avoirs de ladite sociétéconsistait dans sa participation à la
G.A. F., alors administréepar le U.S. Alien PropertyCustodian.Les

autorités suisses ont eu connaissance de cette position à partir duOffice, 24th September 1947, Annex 3 to the Swiss Memorial,

P. 7).

(b) The United States Authorities from July 1945 to August 1946
"repeatedly maintained to the Swiss authorities that the connection
with I.G. Farben was still maintained". (Ibid.)
(c) In the opinion of the Swiss Compensation Office the German
interest in Interhandel could not be proved.

(d) "Like the earlier enquiry the second investigation (Footnote
November 1945-Febmary 1946) established that Interhandel was
in no degree under German influence." (Swiss Application 3 (b).)
(4 "Despite this quite categoricaloutcome the Swiss Compensa-
tion Office continued to block Interhandel-taking into account
the fact that the allied members of the Joint Commission, which
meanwhile had been set up under the Washington Accord, had not
been willing to acceptthe findings of the second enquiry." (Ibid.)
(8 The G.A.F. remained under the administration of the Alien
Property Custodian from 1942 onwards because it was considered
by the United States "to be a company under German control".
(Decision of Swiss Authority of Review, Annex 19 to Swiss 3lemo-
rial, para. B.)

(g) The question decided by the Swiss Authority of Review was
whether Interhandel was under German control.(Ibid., para. 4.)

(h) The Swiss Authority of Review found this issue in favour of
Interhandel and ordered the blocking to be annulled. (Ibid., paras.
II and 12.)
(i) This decision provides one of the main supports relied on by
the Swiss Government in this case.

(j) The Memorial of the Government of Switzerland under Part 1
thereof "Statement of Facts" states that Interhandel attempted
many years before the Second World War "to free itself from al1
German influence and succeeded as we shall show". (First para-
graph.) In paragraph 6 "To decide whether a preponderant German
interest existed" in Interhandel the distribution of shares in that
Corporation is examined. In paragraph 7 "To determine whether
or not" Interhandel "was subject to Germancontrol" some impor-
tance was attributed to the composition of the machinery of the
Corporation which subsequent paragraphs deal with. In paragraph
18 referring to the two decisions of the Swiss Office of Compensa-
tion it is stated that the first "found ...that Interhandel had
completely severedits ties with I.G. Farbefzin 1940 and therefore
there was no need to decree the blocking of its property", the
second enquiry "confirmed that Interhandel was not controlled by
the Germans". In Part II under "Statement of the Law" para-

61mois de juillet 1945 au plus tard (exposéde l'Officesuisse de com-
pensation, en date du 24 septembre 1947, annexe 3 au mémoirede
la Suisse, p. 7).

b) Les autorités américaines, de juillet 1945 à août 1946, ((ont
fait valoir à plusieurs reprises aux autorités suisses que le lien avec
I'I. G.Farben subsistait 1)(ibid.)
c) De l'avis de l'Office suisse de compensation, les intérêts
allemands dans 1'Interhandel ne pouvaient êtreprouvés.
d) « Comme la première, cette seconde expertise (note : novembre

1945 à février 1946) établitqu'Interhandel ne se trouvait nullement
sous influence allemande ».(Requêtede la Suisse, par. 3 (b).)
e) (En dépit de ce résultat pourtant catégoriquel,'office suisse de
compensation maintint le blocage d'Interhande1, prenant en considé-
ration le fait que les membres alliésde la Commission mixte, instituée
entre temps par l'Accord de Washington, n'avaient +as acceptéde
se ranger aux conclusions de la deuxième expertise. »(Ibid.)

f) La G.A:F. est restée placée sous l'administration de 1'Alien
Property Custodian, à partir de 1942, parce qu'elle était considérée
par les Etats-Unis comme une société «sous contrôleallemand »(déci-
sion de l'Autorité suisse de recours, annexe 19 au mémoire de la
Suisse, par. B.).
g) La question tranchée par l'Autorité suisse de recours était
celle de savoir si 1'Interhandel était sous contrôle allemand.

(ibid., par.4.)
h) L'Autorité suisse de recours a tranché cette question en
faveur de 1'Interhandel et a prononcé l'annulation de la décisionla
soumettant au blocage. (Ibid., par. II et12.)
i) Cette décision est l'une des principales pièces invoquées par
le Gouvernement de la Suisse à l'appui de sa thèse en la présente
instance.

i) Le Gouvernement de la Suisse déclare dans la première partie
de son mémoire, intitulée (exposé des faits »:1'Interhandel s'ef-
força plusieurs années avant la deuxième guerre mondiale «de se
dégagerde toutes influences allemandes et y réussit complètement,
comme nous allons le montrer » (par. 1).Au paragraphe 6, «pour
décider si ...il y a un intérêt allemanp drépondérant » dans l'Inter-
handel, on examine la répartition des actions dans ladite société.
Au paragraphe 7, (pour déterminer si » 1'Interhandel cse trouvait

ou non sous contrôleallemand 11on attribue une certaine importance
à la composition des organes de la sociétéet on développe ce point
dans les paragraphes qui suivent. Au paragraphe 18, se référant
aux deux décisionsde l'Officesuisse de compensation, le Gouverne-
ment de la Suisse déclare qu'après sa première expertise, l'Office
((constata qu'en 1940 1'Interhandel s'était complètement détachée
de la I. G. Farben et qu'il n'y avait par conséquent pas lieu de
décréterle blocage de ses biens »; la seconde expertise ((confirma
61graph 81 states "The Swiss Government alleges that the property
of the G.A.F. is Swiss. It is therefore incumbent upon it to prove
that fact. Such proof would appear to us to be furnished as soon
as it is established that the+reponderantinterestin the Corporation
under the control of which G.A.F. is (in other words Interhandel)
is in Swiss hands. This conclusion also results from the investiga-
tions of the Swiss Compensation Officeand from the decision of the
Authority of Review which also coverthe American assets. It is up
to the respondent to furnish proof to the contrary."

(k) The Submissions t8 the Memorial recite (inter alia):

(i) The United States u7asby virtue of Article IV of the Wash-
ington Accord under an obligation to unblock Swiss assets in the
U.S.A. including those of Interhandel. (1st recital.)

(ii) Interhandel was not under enemy control at the time of the
entry of the United States into the Second World War. (2nd recital.)

(iii) G.A.F. was controlled by Interhandel. (2nd recital.)
(iv) The decision of the Swiss Authority of Review recognizes
theSwiss characterof Interhandel. (3rd recital.)
(v) That decision became res judicata vis-à-vis the parties tothe
Accord and so internationally binding on the United States of
America. (4th recital.)

(vi) Independently of the above decision general international
law prohibited the confiscation of private property belonging to
nationals of nezctralStates. (5th recital.)
(vii) Accordingly the United States was bound as a result of the
decision of the Swiss Authority of Review to restore the assets
of Interhandel. (6th recital.)

(I) "Despite" the decision of the Swiss Authority of Review "the
American authorities categorically refused to comply with the
Swiss request for the release of the G.A.F. shares in the United
States". (Paragraph 4 of Application.)
The essential nature of the dispute referred to by Switzerland
in its Application and Memorial was whether or not Interhandel,
the nominal owners of the shares at the time of vesting, was
"Swiss" owned or "German" owned or controlled, in other words
whether Interhandel had completely severed its ties with I.G.
Farben.
The dispute so described may be put in different words, as
indeed at times it has been, but it is that dispute, however described,
which is presently before the Court and it is upon the resolution

62que l'Interhande1 n'étaitpas controlée par des Allemands ».Le para-
graphe 81 de la deuxième partie, intitulée «exposé de droit »,
déclare: itLe Gouvernement suisse allègue que les biens de la G. A. F.
sont suisses. Il lui incombe donc de le prouver. Cette preuve nous

paraît être faite à partir du moment où il est établi que l'intérêt
$répondéranrteprésentédans la sociétédont dépendla G.A.F. (c'est-
à-dire dans 1'Interhandel) est en mains suisses. Cette conclusion
résulte aussi des investigations de l'Office suisse de compensation
et de la décision de l'Autorité de recours, qui vise égalementles
avoirs américains. C'est à la partie défenderessed'apporter la preuve
du contraire. »

k) Les conclusions présentéesdans le mémoiredéclarant notam-
ment :
i) Les États-unis sont, en vertu de l'article IV de l'Accord de
Washington, tenus de lever le séquestre des bienssuisses se trouvant
aux Etats-Unis, parmi lesquels figurent ceux de 1'Interhandel
(premier attendu).

ii) L'Interhandel n'étaitpas contrôlée par deesnnemis au moment
de l'entrée des Etats-Unis d'Amérique dans la deuxième guerre
mondiale (deuxième attendu).
iii) La G.A. F. est contrôléeparl'Interhandel (deuxièmeattendu).

ivj La décisionde l'~uto& suisse de recours reconnaît le carac-
tèresuisse deZ'lnterhandel(troisièmeattendu).
v) La décisionde l'Autorité suisse de recours a acquis force de
chose jugée à l'égard desparties de l'Accord et a donc force obliga-
toire, sur le plan international, pour les États-unis d'Amérique
(quatrième attendu).

vi) Indépendamment de ladite décision, le droit international
généralinterdit de confisquer la propriété privée appartenant
aux ressortissantsd'États neutres (cinquième attendu).
vii) Le Gouvernement des États-unis était donc tenu, en vertu
de la décisionde l'Autorité suisse de recours, de restituer les avoirs
de YInterhandel (sixièmeattendu).

1) (En dépit de »la décisionde l'Autorité suisse de recours, (les
autorités américainesrefusèrent catégoriquement de faire droit aux
requêtes suisses demandant la libération des actions G. A.F. qui
se trouvaient aux États-unis ))(par.4 de la requête).
La nature essentielle du différenddont a fait état la Suisse dans
sa requêteet son mémoireétaitla questiondesavoir silJInterhandel,
propriétaire nominal des actions à l'époque du séquestre, était ou

non propriété (suisse 1ou ((allemande ))ou sous contrôle allemand,
en d'autres termes, si 1'Interhandel s'était complètement détachée
de YI. G. Farben,
Le différendainsi énoncépeut êtreprésentéen termes différents,
comme il est advenu parfois, mais c'est ce différend, quelleque soit
la façon dont il est énoncé,qui est à l'heure présente soumis à la
62of that dispute that the Swiss claim ultimately depends. If Inter-

handel were Swiss (neutral), not "German" (enemy), the Swiss
claim is that its shareholding in G.A.F. was "Swiss" and should
be restored to it.
Within this dispute there have arisen, as is not unusual, other
issues between the Parties which are themselves the subject of
dispute. But when examined it will be seen that they are but
aspects or parts or phases of the same fundamental dispute.

The Swiss Government in its Application and Mernorial stated
in detail facts upon which it claimed to be in a position to establish
that Interhandel was "Swiss" and accordingly that its share-
holding in G.A.F. was Swiss. In its view whether this was "Swiss"
was dependant upon whether Interhandel was Swiss as it claimed
it was in a position to prove. In support of its case it has, however,
placed much reliance upon the Washington Accord.

Thereunder it claims that by virtue of Article IV, paragraph I
thereof, the United States assumed the obligation to unblock
Swiss assets among which it claims are the assets in G.A.F. alleged

to belong to the "Swiss" Corporation Interhandel. If Interhandel
were Swiss, if, the Swiss Authority of Review found, it had
severed its connections with I.G. Farben, then this share-
holding it is contended was also Swiss. But assuming that this
Article has any relevance to this case, the dispute remained the
same.
Switzerland, in the Observations and Submissions on the Preli-
minary Objections, sought to supplement its claims by an alter-
native claim in which it requested the Court to declare that the
"property" which Interhandel "possesses" in G.A.F. "have the
character of non-enemy (Swiss) property and consequently (the
italics here are mine) to declare that by refusing to return the
said property the United States was acting contrary to the
decision of the Swiss Authority of Review of January 1948 and
was in breach of Article IV, paragraph 1, of the Washington
Accord and of the obligations binding upon them under the general
rules of international law".
Assuming that the decision of the Swiss Authority of Review
is relevant to these proceedings, and this issue is also in dispute,

it is clear that the Government of Switzerland is relying upon it
as conclusive evidence against the United States of America on
the real dispute before the Court, namely, as to the Swiss character
of Interhandel and consequently the Swiss character of its share-
holding in G.A.F.
The fundamental dispute-notwithstanding al1 the other issues
within it-is and has always been whether Interhandel-the
nominal holder of the shares in the United States of America-wasCour et c'est de sa solution que la réclamation suisse dépend en fin

de compte. Si 1'Interhandel était suisse (neutre)et non ((allemande »
(ennemie),la réclamation de la Suisse est que sa participation à la
G.A. F. était suisse et devrait lui êtrerestituée.
Dans le cadre de ce différend,d'autres questions ont étésoulevées
entre les Parties, ce qui est chose fréquente, qui font elles-mêmes
l'objet du litige. Mais leur examen fera apparaître qu'il s'agit seule-
ment d'aspects, de parties ou de phases du même différendfonda-

mental.
Dans sa requête et son mémoire,le Gouvernement suisse a énoncé
en détail les faits en vertu desquels il prétendait êtreen mesure
d'établir que lJInterhandel était ((suisse ))et, en conséquence, que
ses participations dans la G.A. F. étaient suisses. A son avis,pour
savoir si cette participation était ((suisse », il fallait déterminer si
lJInterhandel était suisse, ainsi que ce Gouvernement prétendait

être en mesure de le démontrer. Pour étayer son argumentation,
il s'appuie cependant largement sur l'Accord de Washington.
En invoquant ce_texte, il soutient qu'en vertu de l'article IV,
paragraphe I~",les Etats-Unis ont assumél'obligation de débloquer
les avoirs suisses au nombre desquels se trouvent, selon lui, les
avoirs de la G.A. F. qu'il prétend être la propriétéde la société
((suisse 1) Interhandel. Si 1'Interhandel était suisse, si, selon les
conclusions de l'Autorité suisse de recours, elle avait rompu tous

ses liens avec 1. G. Farben, alors cette participation, dit-on, était
également suisse. Mais, en supposant que cet article ait le moindre
rapport avec cette espèce,le différenddemeure le même.
Dans ses observations et conclusions sur les exceptions prélimi-
naires, la Suisse a cherché à compléter sa demande par une con-
clusion subsidiaire par laquelle elle demande à la Cour de dire que
((les biens ))que 1'Interhandel (possède ))dans la G.A. F. <ont le

caractère de biens non-ennemis (suisses) et, en conséquence, de
déclarer qu'e? refusant de restituer lesdits avoirs [c'est moi qui
souligne], les Etats-Unis agissaient en contradiction avecla décision
de l'Autorité suisse de recours de janvier 1948 et violaient l'article
IV, paragraphe 1, de l'Accord de Washington et les obligationsleur
incombant en vertu des règles généralesdu droit international ».

A supposer que la décisionde l'Autorité suisse de recours se rap-
porte à cette procédure, et cette question est également en litige, il
est clair que le Gouvernement suisse l'invoque comme une preuve
concluante contre les Etats-Unis d'Amérique à propos du véritable
différend soumis à la Cour, à savoir du caractère suisse de l'Inter-
handel et, en conséquence, du caractère suisse de sa participation
dans la G. A. F.
Le fond du différend - nonobstant toutes les autres questions

sur lesquelles il p2rte - est et a toujours étéde savoir si l'Inter-
handel - titulaire nominal des actions aux Etats-Unis d'Amérique"Swiss". And the enquiry under the objection is whether a dispute
on that issue arose before the 26th August 1946.
The "neutral" or "enemy" character of Interhandel was, of
course, material under the Washington Accord for the purpose of
carrying out its primary objective, namely, the uncovering, the
census and the liquidation of German property in Switzerland.
But the character of Interhandel had a significance both for
Switzerland and the United States of America which went beyond
this because of the assets in the United States of America which
had stood in the name of Interhandel before they became "vested".
Once the procedure under the Accord was completed, the Swiss
case on this aspect is, and at al1 material times must have been,
that it covered American assets and applies to "vested" property
in the United States of America. (Annex 22 to Swiss Memorial;
para. 81 of Swiss Memorial.) The United States for its part "because

the principal assets" of Interhandel were the shares in G.A.F.,
had "repeatedly maintained to the Swiss Authorities that the
connection with I.G. Farben was still maintained". (Annex 3 to
Swiss Memorial.) It is, 1 think, a proper conclusion that both the
United States of America and Switzerland in the discussions
and correspondence which took place between the two countries
after May 1946 at the latest, regarded the character of Interhandel
in relation to the liquidation of German property in Switzerland
as having a connected and significant bearing on Interhandel's
shares in G.A.F.
Interhandel was a holding Company. Its most important asset
were the shares in G.A.F. It held over go per cent of the shares
therein. Somewhat less than half of the ordinary shares of Inter-
handel were the property of G.A.F. If Interhandel were held by the
Swiss authorities to be "Swiss", whilst that could not-apart from
the Swiss arguments based on Article III of the Annex to the
Washington Accord (res judicata)-have decided the fate of Inter-
handel "assets" in G.A.F., it could assume considerable importance
in relation to them and any alleged obligation upon the United

States to restore them to Interhandel. On the other hand, were
Interhandel determined by them to be "German" or German
controlled, this would have had an important practical bearing
on any claim by Interhandel to have the shares restored to it.

It is contended by Switzerland that prior to the 26th August
1946, the Swiss authorities were not concerned with the fate of
Interhandel's shareholding in G.A.F. Any difference of opinion, if
any, which took place prior thereto, could,therefore, it isid, have
had no relation to that shareholding.
To the extent to which it is necessary to deal with this con-
tention, 1 cannot accept this as accurate. The United States were
expecting Interhandel to bring suit in the United States to recover
the shares in G.A.F. The letter of 20th August 1946 from the Swiss

64- était ((suissen.Et dans le cadre de l'exception, il s'agit de savoir
si le différendsur ce point est néavant le 26 août 1946.
Le caractère cneutre » ou (ennemi » de lJInterhandel était évi-
demment important, selon les termes de l'Accord de Washington,
en vue d'atteindre le but premier de cet Accord, à savoir déceler,

recenser et liquider les biens allemands en Spisse. Mais le caractère
de 1'Interhandel a, pour la Suisse et pour les Etats-Unis d'Amérique,
une signification plus large à cause des avoirs aux Etats-Unis
d'Amérique qui étaient au nom de 1'Interhandel avant d'être
« placés sous séquestre ».A l'issue de la procédure prévue par l'Ac-
cord, la thèse suisse à ce propos est, et a dû êtrependant toute la
période qui nous intéresse, qu'elle portait sur des avoirs amérjcains
et s'appliquait à des biens (placés sous séquestre 1)aux Etats-
Unis d'Amérique. (Annexe 22 dq mémoire suisse, par. 81 du

mémoire suisse.)Pour leur part, les Etats-Unis, «parcequel'essentiel
des avoirs » de 1'Interhandel étaient des actions de la G. A. F.,
avaient fait valoir à plusieurs reprises aux autorités suisses que
le lien avec 1. G. Farben subsistait ». (Annexe 3 au mémoiresuisse.)
Il me paraît légitime de conclure que, tant les Etats-Unis d'Amé-
rique que la Suisse, dans les discussions et la correspondance entre
les deux pays après le mois de mai 1946 au plus tard, ont
considéréquele caractère de 1'Interhandel à l'égard de la liquidation
des biens allemands en Suisse avait une incidence directe et
importante sur les participations de 1'Interhandel dans la G.A. F.

L'Interhandel était une société holding. Ses principaux avoirs
étaient les actions de la G. A. F. Elle en possédait plus de go%.
Un peu moins de la moitié des actions ordinaires de l'Interhande1
appartenait àla G.A. F. Si les autorités suisses estimaient que l'In-
terhandel était « suisse», bien que cela ne puisse pas - en dehors
des arguments suisses fondéssur l'article III de l'annexe à l'Accord
de Washington (res iudicata) - décider du sort des avoirs d'Inter-
handel dans la G. A. F.,cela pouvait avoir une importance considéra-
ble à leur égard et à l'égard detoute prétendue obligation pour les

États-unis de les restituer à 1'Interhandel. D'autre part, s'ils
avaient décidéque lJInterhandel était «allemande »ou sous influen-
ce allemande, cela aurait eu des répercussions pratiques importantes
sur toute réclamation de 1'Interhandel tendant à la restitution
des actions.
La Suisse a prétendu qu'avant le 26 août 1946 les autorités
suisses ne se sont pas intéresséesau sort de la participation de
1'Interhandel dans la G. A.F. Toute divergenced'opinionséventuelle
antérieure à cette date n'aurait pu, par conséquent, dit-on, avoir
le moindre rapport avec cette participation.

Dans la mesure où il est nécessaire d'examiner cette prétention,
je n'en puis reconnaître l'exactitude. Les, Etats-Unis s'attendaient
à ce que lJInterhandel introduise aux Etats-Unis une procédure
afin de recouvrer les actions de la G.A. F. La lettre du 20 août 1946,
64Compensation Officeto Mr. Le Roy Jones, described as Chief of the
Alien Property Section Department of Justice of the United States
(Annex 3 to Swiss Memorial, p. g), appears sufficiently to establish
that Switzerland shared the view that Interhandel would probably
bring such a suit.
Whether any difference of opinion which took place before the
date of the Washington Accord did or did not bear a relation to
Interhandel's holding in G.A.F., 1 am of the opinion that after the
date thereof it did have such a relation, and a direct one.
I. The Swiss Compensation Office, under the Washington

Accord; was the authority empowered to uncover, take into
possession and liquidate the property in Switzerland of Germans
in Germany.
2. The view of the Swiss authorities is, and consistent with the
case it makes out must, it seems to me, at the relevant times have
been that :
(a) The Swiss Authority of Review was created by the Accord
and its duty was, when required so to do, to review the decisions

which the Swiss Compensation Office was called upon to take
under the Accord.
(b) The fact that the Swiss Compensation Office began its in-
vestigations in respect to Interhandel before the conclusion of the
Accord in no way would prevent a decision of the Authority of
Review from having been taken within the framework ofthe Accord
because of the provisions of Article I thereof. "In other words,
though the investigations of the Swiss Compensation Officebegan ...
before the conclusion of the Accord ...they were continued and
completed within the framework of the Accord" (Swiss oral argu-
ment of 11th November 1958). The decision of the Swiss Compen-

sation Office "was made in observance of the Articles of the Accord"
(Swiss Note of 7th September 1948, Annex 22 to Swiss Memorial).
The significance of this viewpoint becomes apparent when seen
against the light of the Swiss contention that the decision of the
Swiss Authority of Review "confirming the non-German character
of Interhandel became res judicata" since it was an appeal from the
Swiss Compensation Office made by "the party (Interhandel) in
interest" under the Accord.
3. The procedure laid down in Article III of the Annex to the
Accord, the Swiss Government claims, would determine what were
Swiss assets in the United States under Article IV of the Accord
(Swiss Note of 7th September 1948, Annex 22 to Swiss Memorial).

"The Washington Accord specifies in Article IV, Section 1, that the
Government of the United States is under an obligation to unblock
Swiss assets in the United States, that is to say,-all Swiss assets
without any exception whatsoever. Who decides whether any parti-
cular pro$erty should bedescribedasSwiss assets? Who decideson the
criterion for distinguishing Swiss assets from German assets blocked
in the United States?

65adressée par l'Office suisse de compensation à M. Le Roy Jones,
désigné comme chef de la section de 1'Alien Property du Depart-
ment of Justice (annexe 3 au mémoire suisse, p. g), parait établir
suffisamment que la Suisse estimait aussi que 1'Interhandel intro-
duirait probablement cette procédure.
Qu'une divergence de vues antérieure à la date de l'Accord de
Washington ait ou n'ait pas eu de rapport avec la participation de
I'Interhandel dans la G.A. F., je suis d'avis qu'après cette date ce
rapport existait et qu'il était un rapport direct.

I. L'Office suisse de compensation, selon l'Accord de Washing-
ton, était l'autorité habilitéeà déceler les biens situés en Suisse et
appartenant à des Allemands en Allemagne, à prendre possession
de ces biens et à les liquider.
2. Les autorités suisses étaient d'avis, et il me semble que,
conformément à l'argumentation qu'elles présentent, elles ont dû
êtred'avis pendant la période de référence,que:

a) l'Autorité suisse de recours a étécrééepar un accord et sa
tâche était, sur demande, de contrôler les décisions que l'Office
suisse de compensation serait amené à prendre en exécution de
l'Accord ;
b) le fait que l'Office suisse de compensation a commencé ses
enquêtes sur 1'Interhandel avant la conclusion de l'Accord n'em-
pêcheen aucune manière qu'une décisionde l'Autorité de recours
ait pu êtreprise dans le cadre de l'Accord, en vertu des dispositions
de son article ler. «En d'autres termes, si les investigations de
l'Office suisse de compensation ont commencé avant la conclusion

de l'Accord ...elles ont étécontinuées et complétées sousle régime
de l'Accord 1)(plaidoirie de la Suisse du II novembre 1958). La
décision de l'Office suisse de compensation a étéprise conformé-
ment aux articles de l'Accord (note suisse du 7 septembre 1948,
annexe 22 au mémoiresuisse). La portée de ce point de vue devient
kvidente à la lumière de la thèse suisse selon laquelle la décisionde
l'Autorité suisse de recours cconfirmant le caractèrenon allemand
de I'Interhandel a acquis force de chose jugée », puisqu'il s'agissait
d'un appel de l'Office suisse de compensation émanant de «la
partie » (Interhandel) en cause au sens de l'Accord.

3. La procédure prévue à l'article III de l'annexe à l'Accord
définirait, selon le Gouvernement suisse, les avoirs suisses aux
Etats-Unis au sens de l'article IV de l'Accord (note suisse du
7 septembre 1948, annexe 22 au mémoire suisse). ((L'Accord de
Washington prévoit dans son article IV, chiffre 1, l'obligation
pour le Gouyernement des Etats-Unis de débloquer les avoirs
suisses aux Etats-Unis, c'est-à-dire tous les avoirs suisses, sans
exception aucune. » Qui décidesi tels ou tels biens doivent être
qualifiés d'avoirs suisses?Qui décidesur le critèrequi distingue les
avoirs suisses des avoirs allemands bloquésaux Etats-Unis? "If we study the Washington Accord inthis connection, one thing

is certain. When property belongs to Swiss physical or Zegalpersons
whose Swiss character has already been confirmed in a binding and
final manner by the Authority of Review under the Washington
Accord, they must inevitably follow the fate of property unblockein
Switzerland" (Swiss oral argument, 11th November, 1958).

4. Under the Accord (Article III of Annex thereto) decisions of
the Authority of Review, made under the provisions of the Accord,

were final. But so also were the decisions of the Swiss Compensation
Office, unless the Joint Commission was "unable to agree to the
decision of that Office", or unless "the party in interest" desired
the matter to be submitted to the Authority of Review. Article III
of the Annex provides "The decisions of the Compensation O@ce
or of the Authority of Review, should the matter be referred to it,
shall befinal."
5. A decision of the Swiss Compensation Office was, on the

Govemment of Switzerland's case as 1 understand it, the
initial step in the chain of proof to establish under Article IV of
the Accord, whether Interhandel's "assets" in the United States
were or were not "blocked" assets, which under Article IV of the
Accord, the United States of America was under obligation to
unblock. If the Swiss Office of Compensation decided that Inter-
handel was "Swiss"-as,'of course, it had already done-and it
confirmed its determination or conclusion after the Washington
Accord, and if the United States (or Joint Commission) did not
contest its determination or conclusion, the view of the Government
of Switzerland must have been it seems to me that that would
decide the fate of Interhandel's "assets" in G.A.F. If the Joint
Commission Powers refused to accept the decision of the Swiss
Compensation Officeand the matter went before the Authority of
Review, its decision would become Switzerland claims res judicatu
unless the Allied Governments requested arbitration. In other
words, if the Swiss character of Interhandel in Switzerland, as

determined by the Swiss Compensation Office, was admitted or
not contested or if on review Interhandel was determined by the
Swiss Authority of Review to be Swiss, the shares in G.A.F., on
the Swiss view of the Accord, would "inevitably follow the fate of
property unblocked in Switzerland".
It is not without significance that as at the 12th December 1945,
454,948 "A" shares in G.A.F. were deposited in Switzerland in the
form of certificates and these were claimed by Interhandel to be
fully under its control.
Did or did not the Swiss Government, as from the date of the
Accord, and before the 26th August 1946, hold the opinion that
Interhandel was not "German" or under German control but
"Swiss" and that consequently Interhandel's "assets" were "Swiss"

66 (Lorsqu'on étudie à ce sujet l'Accord de Washington, une chose
est certaine.'Lorsque ces biens sont la propriété de personnes
physiques ou morales suisses dont le caractère suisse a déjà été
consacré d'une manière obligatoire et définitive par l'Autorité de
recours de l'Accord de Washington, ils doivent suivre fatalement le

sort des biens débloquéesn Suisse» (plaidoiriede la Suisse, lII no-
vembre 1958).
4. Conformément à l'Accord (article III de l'annexeà ce texte),
les décisionsde l'Autorité de recours, prises en vertu desdispositions
de l'Accord, étaient définitives. Mais il en était de même des déci-

sionsde l'Officesuisse de compensation, àmoins que la Commission
mixte ne pût «se déclarer d'accord avec la décisionde cet Office»,
ou à moins que la «partie en cause » ne désire que la question soit
soumise à l'Autorité de recours. L'article III de l'annexe dispose:
« la décisionde l'O@cedecompensationou, selon lecas, de l'Autorité
suisse de recours, seradéfinitiv1).

5. La décision de l'Office suisse de compensation était, d'après
la thèse de la Suisse telle que je la comprends, le premier pasdans
l'enchaînement des preuves pour démontrer, aux termes de l'ar-
ticle IV de l'Accord, si lesavoirs» de 1'Interhandel aux Etats-Unis
rentraient ou non dans les avoirs ((bloqués » qui, aux,termes de
l'article IV de l'Accord, devaient êtredébloquéspar les Etats-Unis.
Si l'Office suisse de compensation a décidéque 1'Interhandel était
« suisse» - et c'est évidemment ce qu'il avait déjàfait - et s'il a
confirmésa décision ou sa conclusion après l'Accord de Washington
et si les États-unis (ou la Commission mixte) n'ont pas contesté sa

décisionou sa conclusion, le Gouvernement suisse a dû penser, me
semble-t-il, que cela réglait le sort des participations de l'Inter-
handel dans la G.A. F. Sila commission mixte avait refusé d'accepter
la décisionde l'Officesuisse de compensation et si la question avait
étésoumise à l'Autorité de recours, la Suisse prétend que la décision
de l'Autorité aurait acquis force de chose jugée, à moins que les
Gouvernements alliés n'aient réclamé l'arbitrage. En d'autres
termes, si le caractère suisse de 1'Interhandel en Suisse, tel qu'il
avait été déterminé par l'Office suisse de compensation, était
reconnu ou non contesté, ou si, après un recoursl'Autorité suisse de
recours décidait que 1'Interhandel était suisse, les actions de la

G. A. F.,d'aprèsl'interprétation suisse de l'Accord, devaiencsuivre
fatalement le sort des biens débloquéesn Suisse1).
Il n'est pas sans intérêtde noter qu'au 12 décembre 1945, un
paquet de 454.94 actions «A »de la G.A. F. était déposé en Suisse,
sous la forme de certificats, et que l'Interhande1 prétend que ces
actions étaient entièrement sous son contrôle.
A dater de l'Accord et jusqu'au 26 août 1946 e Gouvernement
suisse a-t-il oui ou non étéd'avis que l'Interhande1 n'était pas
« allemand » ou sous influence allemande mais ((suisse »,et qu'en
conséquence les «avoirs » de SInterhandel étaient « suisses» et

66not "German"? If it did, it was an opinion directly opposed to
that of the United States authorities. 1 am satisfied it did, irre-
spective ofwhether that opinioncould be described as "provisional"
or subject to possible change, or not. It was a firmly held opinion
put forward in direct conflict with that held by the United States
authorities since 1942.Moreover it seems to me clear enough that on
Switzerland's case, it knew at least that the determination of the
Swiss Compensation Officewas a not unimportant factor in estab-
lishing the Swiss character of G.A.F. "assets" in the U.S.A. The
Swiss Compensation Office was on its case a definite link in the
procedure necessary to prove that Interhandel's "assets" in G.A.F.
were Swiss assets in the U.S.A. The Swiss Compensation Officewas
the competent Swiss authority for this purpose.

Whether the convictions and contentions of the Swiss authorities
are to be called provisional or otherwise-whatever terms are used
to diminish the significance of the official Swiss attitude after the
Accord and before 26th August 1946-it is 1think sufficiently clear
that the Swiss attitude must have been that Interhandel was Swiss,
and accordingly its holding in G.A.F. was Swiss, with the conse-
quence which flowed from that if their claim as to the applicability

of Article IV of the Accord was correct.
It said in terms quite sufficient to establish a dispute+ur
opinion is that Interhandel is Swiss-that is our contention-that
is Our determination. Ifyou persist in claiming otherwise, prove it,
if you can.
1do not intend to detail all the further evidence whichpersuades
me that the dispute existed before the 26th August 1946. 1 shall
content myself with the following:
(a) The Swiss Compensation Office investigated Interhandel
June- July 1945. It "drew ...the logical conclusion that Interhandel
was a Swiss company ..."(para. 3 (b) of Application). This con-
clusion was diametrically opposed to the officia1determination of

the United States.
(b) The Swiss Compensation Office, against its conviction and
only at the direction of the Swiss Federal Political and another
Department, continued the "temporary" blocking of Interhandel.
This was done, the Swiss Govemment states, under pressure by
or as the result of representations from the AUied Governments,
particularly the U.S.A. The blocking was continued not because
there is any reason to suppose the Swiss Political Department
differed with the conclusion of the Swiss Compensation Office, but
because of the pressure or representations. The Swiss Compensation
Office subsequently gave support to Interhandel's appeal to the
Swiss Authority of Review. From at least July 1945 the Swiss

67non allemands ». S'il en était ainsi, cette oginion était diamé-
tralement opposée à celle des autorités des Etats-Unis. Je suis
convaincu qu'il en a étéainsi, que cette opinion ait étéou non
qualifiée de «provisoire >)et susceptible d'être modifiée. C'était
une opinion soutenue énergiquement et en contradiction absolue
avec celle que les autorités des Etats-Unis défendaient elles-mêmes
depuis 1942. AUsurplus, il me semble tout à fait clair que, d'après
l'argumentation mêmede la Suisse, elle savait au moins que la

décision de l'Office suisse de compensation représentait un facteur
non négligeable lorsqu'il s'agissait d'établir le caractère suisse des
((avoirs» de la G.A.F. aux Etats-Unis d'Amérique.L'Officesuissede
compensation était, dans cette affaire, un des chaînons de la procé-
dure indispensable pour établir que les (participations » de 1''nter-
handel dans la G.A. F. étaient des avoirs suisses situésaux Etats-
Unis. L'Office suisse de compensation étaitl'autorité suissecompé-
tente à cette fin.
Que l'on doive qualifier de provisoires les convictions ou les
allégations des autorités suisses, ou qu'on leur applique d'autres
termes pour diminuer la portée de l'attitude officielle prise par la

Suisse après l'Accord et jusqu'au 26 août 1946, cette attitude me
semble bien claire :YInterhandel était suisse et il s'ensuivait que ses
participations dans la G.A. F. étaient suisses,d'où cette conséquence
que la réclamation de la Suisse relative à la possibilité d'appliquer
l'articleIV de l'Accord était fondée.
Elle déclarait, en termes assez clairs pour établir un différend:
nous estimons que 1'Interhandel est suisse - telle est notre thèse,
telle est notre décision. Si vous persistez à prétendre le contraire,
prouvez-le, si vous le pouvez.
Je n'ai pas l'intention d'examiner dans le détail toutes les autres
preuves qui me persuadent que le différendexistait avant le 26 août
1946. Je me bornerai à ce qui suit:

(a) L'Office suisse de compensation a fait une enquête sur
1'Interhandel en juin-juillet 1946. Il((tira ...la conclusion logique
qu'Interhandel était une société suisse ...» (paragraphe 3 b) de la
requête). Cette conclusion est diamétralement opposée à l'opinion
officielledes Etats-Unis.

(b) L'Office suisse de compensation, contre sa conviction et
uniquement sur les instructions du Département politique fédéral
et d'un autre Département, a maintenu le blocage (temporaire »de
1'Interhandel. Cette mesure a étéprise, déclare le Gouvernement
suisse,sous la pression des Gouvernements alliés ou à la suite de

représentations émanant de ces Gouvernements, en particulier des
Etats-Unis d'Amérique. Le blocage a été maintenu non parce qu'il
y a la moindre raison de supposer que le Département politique
fédéralsuisse s'écartait des conclusionsde l'Officesuisse de compen-
sation, mais en raison de cette pression ou de ces représentations.
L'Officesuisse de compensation a appuyéensuite l'appel que l'Inter-

67Compensation Office persisted in its view that Interhandel was
"Swiss".

(c) The United States continued at allmaterial times to assert
that Interhandel was not "Swiss" but "German".

(d) An officia1 statement of the Government of Switzerland
contained in its letter of 6th November 1945(Exhibit 12to United
States Preliminary Objections), after referring to the investigation
of the Swiss Compensation Office,went on to state that a decision
had been made recently to block for a limited time "in order to
permit your authorities, if they persisted in regarding this holding
as under German influence to furnish the proof for it. This way one
has taken into account the importance which your Govemment
attaches to the matter."

(e) At this stage (November 1945)~as appears from this letter,
the Swiss position may be summed up as follows:
Our conclusion is that Interhandel is Swiss-owned. That is
Our opinion. You dispute it. We realize the importance your
Government places on the result, but if you persist in your
contention that the "holding" is under German influence, you

prove it before the 31st January 1946.
(f) At least from February 1946 onwards, the Swiss Compensa-
tion Office remained adamant in its contention that Interhandel
was "Swiss", not "German". It adheredthroughoutto this contention.
The fact that it indicated to United States officials that if they

could produce evidence to establish Interhandel was German-
controlled, it was prepared to consider it, in no way dimin-
ishes the fact that it adhered firmly to its determination and wasin
disagreement with the United States authorities.
(g) The Swiss Political Department was informed not only of
the determinations of the Swiss Compensation Office, but of dis-
cussions with United States officialç. (See e.g. letter of 10th Decem-
ber 1945, President of the Swiss Compensation Officeto M. Petit-
pierre, Head of Political Department of the Govemment of Swit-
zerland, Annex 2 to Swiss Observations, and letter next referred to.)

Only a few further documents need be specifically referred to:

10th August 1946-Letter Swiss Compensation O@ceto MY. Har~y
Le Roy Jones
This letter stated that :
The Swiss Compensation Officewas of opinion that Interhandel
should not be blocked, and for the reason that Interhandel was in

its view "Swiss", not "German". This was a view diametrically
opposed to and in disagreement with the opinion of the United
68Iiandel a interjeté devant l'Autorité suisse de recours. Depuis le
mois de juillet 1945 au moins, l'Office suisse de compensation per-

siste à affirmer que lJInterhandel est (suisse 1).
(c) Les États-unis ont continué d'affirmer que I'Interhandel
n'était pas (csuisse 1mais callemande 1)pendant toute la période

qui nous intéresse.
(d) Un exposé officiel du Gouvernement suisse figurant dans sa
lettre du 6 novembre 1945 (pièce 12 des exceptions préliminaires
des Etats-Unis), après avoir mentionné l'expertise de l'Officesuisse
de compensation, déclare ensuite qu'une décision a été prise

récemment de bloquer, pour un temps limité, ((afin de permettre à
vos autorités, si elles persistentà considérerce holding comme étant
sous influence allemande, d'en apporter la preuve. Il a étéainsi
tenu compte de l'importance que votre Gouvernement attache à
cette affaire ».

(e) La position du Gouvernement suisse, à ce stade (novembre
1945)~ainsi qu'il résulte de cette lettre, peut se résumer ainsi:
Notre conclusion est que 1'Interhandel est propriété suisse.

Telle est notre opinion. Vous la contestez. Nous comprenons
l'importance que votre Gouvernement attache au résultat, mais
si vous persistez dans votre thèse que le cholding » est sous
influence allemande, prouvez-le avant le 31 janvier 1946.

(f) Depuis février 1946 et par la suite, l'Officesuisse de compen-
sation est resté inébranlable dans sa thèse qui veut que l'Inter-
handel soit «suisse ))et non «allemande »,et il n'a lamais cesséde
s'y tenir.Le fait qu'il est indiqué aux fonctionnaires américainsque,
s'ils pouvaient produire des preuves établissant que 1'Interhandel
était sous contrôle allemand, il était disposé à examiner ces preuves

n'enlève rien au fait qu'il maintenait fortement sa décisionet qu'il
était en désaccord avec les autorités des Etats-Unis.
(g) Le Département politique suisse était au courant non seule-
ment des décisions de l'Office suisse de compensation, mais des
discussions avec les fonctionnaires américains (voir, par exemple,
la lettre du IO décembre 1945 du président de l'Office suisse de

compensation à M. Petitpierre, chef du Département politique du
Gouvernement suisse, annexe 2 aux observations suisses et la
lettre ci-dessous).
11me suffira de mentionner quelques autres documents:
Lettre du IO août 1946 de 1'Oficesz~issede compensation à M. Harry
Le Roy Jones

Cette lettre énonçait que l'Office suisse de compensation était
d'aviq sue 1'Interhandel ne pouvait êtrebloquée,pour le motif que

cette sociétéétait à ses yeux ccsuisse 1et non pas « alLemande ».
C'était une opinion diamétralement opposée à celle des Etats-Unis
6871 INTERHANDEL (SEPAR. OPIir;. OF SIR PERCY SPENDER)

States. It was a differencebetween the two countries on an issue of
prime importance, inthe Swiss view at least, and hardly less impor-
tant from the point of view of the United States Alien Property
Control in relation to the G.A.F. holding of Interhandel. There
was a dispute on the real issue (cf. Annex 22 to Memorial, pp. 144
and 146). If Interhandel were unblocked, in the Swiss view-of the
Accord, the fate of G.-4.F. shares "inevitably followed" that event.

Having stated its opinion as above, it refers to the United States
opinion to which Swiss opinion was opposed as-"Your opinion
that the Interhandel firm is controlled by Germans".

In this letter one was saying Interhandel is not controlled by
Germans, or it is olir opinion it is not; the other was saying it is
controlled by Germans, or it is Our opinion that it is. And the
relation of this clash of opinion on Interhandel's G.A.F. holding
is at this stage manifest.

Minutes of Conference at FederalPolitical Department,
16th August 1946
The United States record of the meeting is set out in Exhibit 15
to its Preliminary Observations. Mr. Fontanel, who represented
the SwissFederal Political Department, stated that M. Petitpierre-
the official head of that Department-had said that Interhandel
would not be immediately unblocked, that Interhandel "after two

investigations by the Swiss Compensation Office had beendetermined
to be Swiss-owned", and that M. Petitpierre therefore felt it was
incumbent upon the American authorities to present evidence to
contradict these findings. (Cf. para. 81 of the Swiss Memorial.)

The Swiss Record (Annex 5 to Swiss Observations) supports this,
though it reads somewhat differently.It is, however, quite sufficient
to rely upon the Swiss Record. Mr. Fontane1 asked Mr. Le Roy
Jones, who represented the United States at the conference, what
stage had been reached in the Interhandel "affair". "If the Ameri-
cans desire the blocking to be maintained, they would have to
justify their request by furnishing us, if not with proof, at least
with serious indications that I.G. Chemie is under German control."

It is, in my opinion, not possible to accept the argument that
because no so-called "final position" was taken by Switzerland, no
dispute existed. Parties in dispute frequently change their position.
No so-called final deadlook is necessary to establish a dispute. On
any realistic approach to the matter, the United States and Swit-
zerland were then in dispute on the real issue on which they are
now in dispute.et en complètecontradiction avec celle-ci. Il y avait désaccordentre
les deux pays sur une question d'importance primordiale, tout au
moins aux yeux de la Suisse, et à peine moins importante au point
de vue de 1'Alien Property Custodian des Etats-'L'nis, quant aux
participations de lJInterhandel dans laG. A. F. Il y avaitun différend
sur le véritable point litigieux (voirannexe 22 au mémoire,pp. 144
et 146). Si lJInterhandel était débloquée,les actions de la G. A.F.
devaient, selon l'interprétation donnée par la Suisse à l'Accord,
« suiz~refatalement »le mêmesort.

Ayant ainsi-donné son avis, l'Officeparlait alors en ces termes de
l'opinion des Etats-Unis opposéeà celle de la Suisse :((votreopinion
que la maison Interhandel est contrôleé par les Allemands ».
Dans cette lettre l'une des parties disait que YInterhandel
n'était#as sous contrôle allemand, ou que telle était son opinion,
tandis que l'autre déclarait que cette société étaitsous contrôle
allemand, ou que telle était son opinion. Le rapport entre ce conflit
d'opinions et les participations de 1'Interhandel dans la G.A.F. est,
à ce stade, manifeste.

Compte rendu de la réunion tenue au Départementpolitique fédéral
le 16 août 1946

Le compte rendu américain de cet entretien est reproduit à la
pièce 15 annexée aux exceptions préliminaires. M. Fontanel,
représentant du Département politique fédéral, déclare que
M. Petitpierre, chef officiel de ce Département, avait déclaréque
1'Interhandel ne serait pas immédiatement débloquée, que l'Inter-
handel, « après deux enquêtes auxquelles avait procédél'Office
suisse de compensation, avait étéreconnue comme étant propriété
suisse )et que M. Petitpierre pensait par conséquent qu'il apparte-
nait aux autorités américainesde produire des preuves pour contre-
dire ces conclusions. (Voir mémoire de la Suisse, paragraphe 81.)
Cela est confirmé par le compte rendu suisse (annexe 5 aux

observations de la Suisse), dont la rédaction est cependant un peu
différente. Mais il est tout à fait suffisant de se référerau compte
rendu suisse. M. Fontane1 demanda à M. Le Roy Jones, qui repré-
sentait les États-unis à la réunion, où en était cl'affaire». «Si les
Américains désirent que le blocage soit maintenu, il est nécessaire
qu'ils justifient leur requêteen nous fournissant sinon des preuves,
tout au moins des indices sérieux que 1'1.G. Chemie est sous con-
trôle allemand. ))
Je ne crois pas qu'il soit possible d'admettre que, la Suisse
n'ayant pas pris ce que l'on appelle une ((position définitive »,il
n'existait pas de différend. Les parties à un litige modifient souvent
leur position.Il n'est pas nécessaire d'en arriver à ce qu'on appelle
une impasse définitive pour établir un différend. Tout examen
objectif de la question montre qu'il existait entre les Etats-Unis et

la Suisse un différend portant précisémentsur la question qui fait
l'objet du litige actuel.
69Letter of 20th Azg~st, Swiss Compensation Ofice to Mr. Jones

This is six days before the operative date of the United States
Declaration of Acceptance. There G.A.F. is clearly in the picture.
The Swiss Compensation Office, which at that time was of opinion
that the German interest "cannot be proved" (p. 9 of Annex 3 to
Memorial), was stating that what u7as involved in the United
StatesJ request for further investigation by the Swiss Compensation
Office, in collaboration with the United States Department of
Justice and Office of the Alien Property Custodian, was "not
merely an enquiry concerning the question of the blocking of I.G.
Chemie or measures to be taken under the Washington Accord, but

rather the discovery of documents in the interests of the Office of
the Alien Property Custodian".
It is in my view not possible, on any reasonable reading of this
letter, not to be satisfied that if the dispute had not arisen before
this date, as 1 am of the opinion it had, it certainly at this time
had. The Swiss Compensation Office had, before sending this letter,
submitted the matter to the Federal Political Department. The
whole letter merits special attention, but particularly the para-
graph commencing with the words "Considering that the object ...,
etc.". The reply of that Department was to the effect that in the
main "it confirms the point of view which I have already indicated
to you and which 1 have outlined above. Namely, on the Swiss side,
the opinion is held that it is now for the American authorities to
furnish to the Swiss Compensation Office the means of proof which
in the American view should lead the Swiss Office to block I.G.
Chemie definitively, that it to Say, to consider it...as being under
German influence."

A few final observations:
In my opinion, it is not permissible to treat this objection as
divisible into two parts corresponding to the principal and alter-
native submissions or claims as if there were two separate disputes,
the first, one in which the Government of Switzerland espouses the

cause of its national, the second, one in which she claims relief in an
independent capacity.
To do so leads to error. Such an approach to this objection
mistakes form for substance. It blurs the distinctions between the
subject-matter of a dispute, the dispute itself and the submissions
or claims for relief, which spring from the dispute. It disregards, in
my view, the essential unity of the dispute in this case-the single
dispute referred to in the Swiss Application and Memorial. It focus-
ses attention on the submissions or claims for relief rather than
on the dispute itself.
Al1submissions and claims for relief are directed to one common
purpose, to obtain for Interhandel restitution of its "assets" in
G.A.F. The alternative submission or claim for relief, which directsLettre du 20 ao6t de l'ofice suisse de compensation à iM. Jones

Cette lettre est antérieure de six jours à l'entrée en vigueur de
la déclaration d'acceptation des Etats-Unis. La G. A. F. y est nette-
ment en cause. L'Officesuisse de compensation qui, à cette époque,
estime que l'intérêtallemand (ne peut êtreprouvé,))(annexe 3 au
mémoire, p. g), déclare que dans la demande des Etats-Unis (sup-
plément d'enquête del'Officesuisse de compensation en collabora-
tion avec le Département de la Justice des Etats-Unis et 1'Alien
Pro#erty Custodian Ofice) il ((ne s'agit pas seulement d'une revision

concernant la question du blocage de la société1. G. Chemie ou de
mesures à prendre en relation avec l'Accord de Washington, mais
plutôt de découvrir et de réunir des documents dans l'intérêtdu
bureau de 1'AlienProperty Custodian n.
J'estime impossible de lire raisonnablement cette lettre sans être
convaincu que si le différend n'était pas né auparavant (et je suis
tout à fait persuadé du contraire), il l'était certainement à cette
date. Avant d'envoyer sa lettre, l'Office suisse de compensation
avait soumis la question au Département politique fédéral. Toute
la lettre mériteune attention particulière, mais surtout le paragraphe

qui commence par les mots (Considérant que le but ...etc. 1)Voici
la réponse du Département politique: «Elle confirme dans ses
grandes lignes le point de vue que je vous ai déjà fait connaître
et que j'ai esquissé ci-dessus, à savoir que du côtésuisse on est
d'avis qu'il appartient dorénavant aux autorités américaines de
fournir à l'Office suisse de compensation les moyens de preuves
qui, selon l'avis américain, devraient amener les autorités suisses
à bloquer définitivement 1'1.G. Chemie, c'est-à-dire de la considérer
...comme étant sous infience allemande. ))

Quelques remarques pour terminer :
J'estime que l'on ne saurait distinguer dans cette exception deux
parties correspondant respectivement aux conclusions ou demandes
principale et subsidiaire comme s'il s'agissait de deux différends
distincts, l'un dans lequel le Gouvernement suisse prend fait et

cause pour son ressortissant, l'autre où il exerce un recours à titre
indépendant.
C'est là une cause d'erreur. Une telle manière d'envisager l'ex-
ception revient à prendre la forme pour le fond. Elle obscurcit les
distinctions entre l'objet du différend, le différend lui-mêmeet les
conclusions ou demandes de réparation qui découlent du différend.
Elle méconnaît, à mon avis, l'unité essentielle du présent litige -
le seul dont il soit question dans la requête et le mémoire de la
Suisse. Elle concentre l'attention sur les conclusions ou recours au
lieu de le faire sur le différend même.

Toutes les conclusions et recours visent un mêmebut qui est
d'obtenir la restitution à 1'Interhandel de ses « avoirs ))dans la
G. A. F. La conclusion oulerecours subsidiairequiporte sur un moyenitself to a means by which this purpose might be achieved, has, to
use the words of the Swiss Memorial (para. go), "simply a subsi-
diary character".
To divide the objection in the manner indicated has, it seems to
me, led to the error of seeking in respect of the first submission or
claim for relief, the initial request by Switzerland for the retum to
Interhandel of its "assets" in G.A.F. and the first negative reply
aven by the United States to that request, and so disposing of the
objection on this part, and then in turn disposing of what was

considered a separate dispute by finding that the same fate should
attend that, since it could not have arisen until after the first had.

In any event, 1 cannot agree that a test of demand and refusal
in this case can be decisive in determining the date of the dispute.
The "neutral" or "enemy" character of Interhandel being the essen-
tial dispute between the Parties, the fact that no claim or demand
for restitution was made by Switzerland until after 26th August
1946 is irrelevant to the issue raised by the objection. When the
demands or requests connected with either the principal or subsi-
diary c-laim for relief were made the dispute, in my view, already
existed.
It is not without significance that the Memorial of Switzerland
contains a number of paragraphs (35-40) which fall under the

heading "Swiss Attempts to settle the Dispute". From a perusal of
these paragraphs it is at once evident that the dispute with which
we are here concemed and to which both the Swiss Application and
its Memorial direct themselves had, as of course it must have,
already arisen before any proposa1 to have recourse to arbitration or
conciliation to settle the dispute was or could be made.

For the reasons above advanced, 1 think the first objection
should have been upheld.

Second Objection

In dealing with this Objection the Court, following the course it
did on the First Objection, has again divided what, in my opinion,
is one dispute into two, elevating what was purely a subsidiary sub-
mission or claim for relief into a separate and distinct dispute.
1 have already expressed my reasons why 1 think this procedure
inadmissible.
Myapproach to the Second Objection assumes, contrary to the
view already expressed by me on the First, that the dispute arose
after the 26th August 1946, and before the 28th July 1948. On that
assumption 1 agree with the decision of the Court and with its
reasons.

71d'atteindre ce but n'a, pour reprendre les termes du mémoire dela
Suisse (par. go), (cqu'un caractère subsidiaire ».

Diviser I'exception de la manière indiquée a, me semble-t-il,
conduit à l'erreur consistant à rechercher, en ce qui concerne la
conclusion ou recours principal, la première demande de la Suisse
tendant à la restitution à 1'Interhandel de ses ((avoirs » dans la
G.A. F. et la première réponse négativeopposéepar les États-unis à
cette demande, disposant ainsi de l'exception, puis à traiter alors
de ce que l'on considère comme un différend distinct en disant qu'il
doit suivre le mêmesort puisqu'il ne saurait avoir pris naissance

avant le premier.
Je ne saurais en tout cas admettre que le critère de la demande
et du refus puisse êtredécisifen vue de déterminer la date du pré-
sent différend. Le caractère ((neutre » ou ((ennemi »de1'Interhandel
constituant essentiellement le litige entre les Parties, le fait que la
Suisse n'ait pas formuléde demande de restitution avant le 26 août
1946 est sans pertinence quant aux questions soulevéespar l'excep-
tion. A mon avis, lorsque les demandes ou requêtes se rapportant
soit au recours principal, soit au recours subsidiaire, ont étéformu-
lées,le différend existait déjà.

Il n'est pas sans importance de noter que le mémoire de la Suisse
contient un certain nombre de paragraphes groupés sous l'en-tête
((Tentatives suisses de résoudre le différend à l'amiable » (para-
graphes 35 à 40). Ilressort immédiatement de leur lecture que le
litige dont il s'agit en l'espèce et qui est visédans la requêteet le
mémoirede la Suisse a (comme il se devait évidemment) pris nais-
sance avant qu'ait étéformulée ou ait pu être formulée aucune
proposition tendant à recourir à l'arbitrage ou à la conciliation pour
réglerledit litige
Pour les motifs que je viens d'indiquer, je suis d'avis que la
première exception aurait dû êtreretenue.

Deuxième exception
Suivant à nouveau pour cette exception la méthode qu'elle a
adoptée pour la première, la Cour a encore divisé en deux litiges
ce qui en constitue à mon avis un seul et transformé en un litige
séparéet distinct ce qui était purement et simplement une conclu-

sion ou un recours subsidiaire. J'ai exposé les raisons pour lesquelles
j'estime cette méthode inadmissible.
La manière dont je conçois la deuxième exception me permet
d'envisager, contrairement à la thèse que je viens d'exposer au sujet
de la première, que le différend a pris naissance après le 26 août
1946 et avant le 28 juillet 1948. Cela étant posé, je suis d'accord
avec la décisionrendue par la Cour et avec ses motifs. INTERHANDEL (SEPAR. OPIN. OF SIR PERCY SPENDER)
74
If instead of the words "hereafter arising" there had been inserted
the words "arising after the 26th August 1946", the Objection of
the United States would, 1think, hardly have been arguable. In my
opinion the conclusion to be reached would be the same in both.
A proper test in this case is to compare the Declarations of Accept-
ance of the two States and by so doing determine the scope of the

Court's jurisdiction covered by each. This 1 think leads to the
conclusion that the consensual agreement, the common ground,
between the Parties includes al1disputes arising after the effective
date of the United States' Declaration, namely the 26th August
1946. The Declarations of each State concur in comprising the
dispute in question within their scope.

The Second Objection should be dismissed.

1 agree with the decision of the Court and its reasons in uphold-
ing the Third Objection and in rejecting Part (b) of the Fourth
Objection.
(Signed) Percy C. SPENDER. Si les mots «qui s'élèverontaprès le 26 août 1946 )avaient été
utilisés au lieu des mots «qui s'élèveront à l'avenir», l'exception

présentéepar les États-unis aurait été,je pense, difficilement
soutenable. A mon avis, la conclusion devrait êtrela mêmedans
les deux cas. Le critère approprié en l'espèce est de comparer les
déclarations d'acceptation des deux Etats et de déterminer ainsi
l'étendue de la compétence de la Cour telle qu'elle est fixéepar
chacune d'elles. Je pense que cela amène à la conclusion que l'ac-
cord consensuel, le terrain d'entente entre les deux Parties, porte
sur tous les litiges ayant pris naissance après l'entrée en vigueur de
la déclaration des États-unis, c'est-à-dire après le 26 août 1946.
Les déclarations des deux Etats concordent pour inclure dans leur
champ d'application le différenden question.

La seconde exception doit êtrerejetée.
Je suis d'accord avec la décisionde la Cour et les motifs invoqués
pour accueillir la troisième exceptionet rejeter la partie (6) de la
quatrième exception.

(Signé)Percy C. SPESDER.

Document file FR
Document Long Title

Separate Opinion of Sir Percy Spender

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