Certain Norwegian Loans (France v. Norway) - Sitting of May 25th, 1957

I.C. J.

The following information from the Registry of the International
Court of Justice has been communicated to the Press:

:'On May 25th the International Court of Justice held a hearing in
the case of Certain Norwegiul Loans. M. André Gros, Agent of the French
Government, concluded his oral reply, at the end of which he put forward
the following Submissions:

"The Government of the French Republic requests the Court to adjudge
and 'declare :

1. That the claim of the Goverment of the French Republic, which has
adopted the cause of its nationals who are holders of bond certificates
of the Norwegian loans in question, constitutes a case of the recovery
of contract debts within the meaning of Article 1 of the Second Hague
Convention of October leth, 1907; that this clairp, not having been
settled by diplomatic means, has given rise to a legal dispute of an
international character between the two States;

2. that the two States, by their acceptance of the compulsory juris-
diction of the International Court of Justice, have recognised the
competence of the Court in al1 legal disputes concerning the interpreta-

tion of a treaty, any question of international law, the existence of
any fact which, if established, would constitute a breach of an inter-
national obligation;

3. that the recovenj of the debts due under the loans in question,
claimed from the Government of the Nomegian State by the French Govern-
ment which has adopted the cause of its nationals who are holders of
bond certificates, raises an issue pihich, within the meaning of Article
36, paragraph 2, sub-paragraphs (b) and (c), falls within the competence
of the Court by virtue of the acceptance of both Parties;

4.
that the dispute may be brought before the Court without the need
for the exhaustion of local remedies sulce it has not been shown that
such remedies could be effectuai.

On the 1ferits:-

1- That the loans which constitute the subject matter of the Application
of the Goverment of the French Republic are international loans and that
it follows from the nature of the bearer bonds that in respect of aKL
foreign holders the substance of the debt is the same and that payments
to foreign holders of an identical certificate mst be made without any

discrimination;
2.
that the said loans contain an undertaking to pay in goldvalue
interest and amounts due on redemption of the bonds;

3. that undertakings as to the amount of the debts contracted under
the said loans by the Norwegian State with French nationals, containhg
express conditions as to performance, cannot be unilaterally modified by
that State without negotiation with the holders, with the French State
which has adopted the cause of its nationals, or without arbitration as
to the financial capacity of the debtor State to fulfil its obligations;

4* that in these circumstances, and without passing upon the financial

adjustment of payments tvhich the Government of the French Republic has
declared itself ready to study with the Government of the Kingdom ofNorway, the claim of the Government of the French Republic should be
held to be well-founded;

56 that the Kingdom of Norway, having expressly promised and guaran-
teed payment in gold value of the sums due in performance of its
obligations under the various loans in issue, the debtor cannot validly
discharge this obligation except by payments as they fall due in gold
Value.

The next hearing wili be held on Tuesday, May Zth, at 10.30 a,m.
The court will then hear M. Arntzen, Agent and Counsel of the Norwegian
Government, ho wiii present his oral Rejoinder,

, The Hague , May Wh, 1957.