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Pam 27-161-1

            plications of  an  issue are  for  our  foreign  relations,  the  weaker  the   and ineffective to pass title, the wisdom of the precedents is confied.
            justif~cationfor exclusivity in the political branches. The balance of rele-   While each of the leading cases in this Court may be argued to be dis-
         ,  vant considerations may also be shifted if the government which  per-   tinguishable on its facts from thisone-Underhillbecause sovereign im-
         I  petrated the challenged act of state is no longer in existence, as in the   munity  provided  an  independent  ground  and  Oetien,  Ricaud,  and
            Bemstein case, for the political interest of this country may, as a result,   Shapleigh bemuse there was actually no violation of international law-
            be measurably altered. Therefore, rather than laying down or reaffi-   the plain  implication of all these opinions, and the import of express
            ing an inflexible and all-encompassing rule in this case,we decide only   statements in Oegien, 246 U.S., at 304, 38 S.Ct. at 311, and Shapleigh,
            that the Judicial Branch will not examine the validity of a taking of prop-   299 U.S.,  at 471, 57 S.Ct. at 262, is that the act of state doctrine is ap-
            erty within its own territory by  a foreign sovereign government, extant   plicable even if international law has been violated. In Ricaud, the one
            and remgnized by  this country at the time of suit, in the absence of a   case of the three most plausibly involving all international law violation,
            treaty or other unambiguous agreement regarding controlling legal prin-   the possibility of an exception to the act of state doctrine was not dis-
           ciples, even if the complaint alleges that the taking violates customary   cussed. Some commentators have concluded that it was not brought to
           international law.                                   the Court's  attention, 35  but Justice Clarke delivered both the OeQen
             There are few if any issues in international law today on which opin-   and Ricaudopinions, on the same day, so we can assume that principles
           ion seemsto be so divided as the limitations on a state's power to ex-   stated in the former were applicable to the latter case.
           propriate the property of aliens. 26 There is, of course, authority, in in-   The possible adverse consequences of a conclusion to the contrary of
           ternational judicial 27 and arbitral28 decisions, in the expressions of na-   that implicit in these cases is highli&ted  by contrasting the practices of
           tional governments, 29 and among commentators 30 for the view that a   the political branch with the limitations of the judicial process in matters
           taking is improper under international law if it is not for a public pur-   of this kind. Following an expropriation of any sigd~cance, the Execu-
           pose,  is discriminatory, or is  without provision for prompt, adequate,   tive engages in diplomacy aimed to assure that United States citizens
           and effective compensation. However, Communist countries, although   who are harmed are compensated fairly. Representing all claimants of
           they have in fact provided a degree of compensation after diplomatic   thiscountry, it will often be able, either by bilateral or mulitlateral talks,
           efforts, commonly recognize no obligation on the part of  the taking   by submission to the United Nations, or by the employment of econom-
           country. 31 Certain representatives of the newly independent and under-   ic and political sanctions, to achieve some degree of  general redress.
           developed  countries have  questioned whether rules of  state respon-   Judicial determinations of invalidity of title can, on the other hand, have
           sibility  toward  aliens  can  bind  nations  that  have  not  consented  to   only an occasional impact, since they depend on the fortuitous circum-
           them 32  and  it  is  argued  that  the  traditionally  articulated  standards   stance of the property in question being brought into this country. 36
           governing expropriation of  property reflect "imperialist"  interests and   Such decisions would, if the acts involved were declared invalid, often
           are inappropriate to the circumstances of emergent states. 33   be likely to give offense to the expropriating country; since the concept
             The disagreement as  to relevant international law standards reflects   of  temtorial sovereignty is so deep seated, any  state may  resent the
           an even more basic divergence between the national interests of capital   refusal of the courts of another sovereign to accord validity to acts within
           importing  and  capital  exporting  nations  and  between  the  social   its territorial borders. Piecemeal dispositions of this sort involving the
           ideologies of those countries that favor state control of a considerable   probability  of  affront  to another state could  seriously  interfere with
           portion of the means of production and those that adhere to a free en-   negotiations being canied on by  the Executive Branch and might pre-
           terprise system. It is difficult  to imagine the courts of this country em-   vent or  render less favorable the terms of  an agreement  that  could
           barking on adjudication in an area which touches more sensitively the   othenvise  be  reached.  Relations  with  third  countries  which  have
           practical and ideological goals of the various members of the community   engaged in similar expropriations would not be immune from effect.
           of nations. 34                                         The dangers of such adjudication are present regardless of whether
             When we  consider the prospect of the courts characterizing foreign   the State Department has, as it did in this case,asserted that the rele-
           expropriations, however justifiably,  as invalid under international law   vant act violated international law. If  the Executive Branch has under-
                                                                taken negotiations with an expropriating country, but has refrained from
             26.  Coqre, e.g.. Frkdman, &mprhHon  In Inrernatlo~lLuw 206 21 l  (1953); Damn   claims of violation of the law of nations, a determination to that effect by
           and Weston,  "Pmmpr.  Adequate and &EecHw'? A  Unlwml Stanclclrd afCompen?uHon  ? 30   a court might be regarded as a serious insult, while a finding of  com-
           Fordham L.Rev. 727 (1%2), with Note from Se~etmyof State Hull to Mexican Ambassador,   pliance with international law, would greatly strengthen the bargaining
           Auuusl22,  1938, V Fomign Relations of the United States 685 (1938); Doman, Postwar Na-
           tionallrotion afforeign Proper(v In  Europe, 48 Col.L.Rev. 1125,  1127 (1948).  We do not, of   hand  of  the  other state with  consequent detriment to  American  in-
           mwse, meanto say that there is no international standard in this area;we mnclude only that the   terests.
           matler is not met for adjudication by domestic tribuhals.   Even if the State Department has proclaimed the impropriety of the
             27.  SeeOscarChinn Case, P.C.I.J., ser. A/B,  No. 63, at 87 (1934); Chorrow Factory Case,
           P.C.I.J., str. A,, No.17, at 46, 47  (1928).         expropriation, the stamp of approval of its view by a judicial  tribunal,
             28.  See,  e.g..  Norwegian  Shipowners' Case (NomyNnited  States)  (Perm. Ct.Arb.)   however impartial, might increase any affront and the judicial decision
           (1922),  1 U.N.Rep.Int'l Arb. Awards 307, 334, 339 (1948). Hague Court Reports, 2d Series,   might occur at a time, almost always well after the taking, when such an
           39.69.74  (1932); Marguerite de Ioly de SaMa, Ameh and PanSmanianGenersl Claims Ar-   impact would be contrary to our national interest. Considerably more
           bitration 379, 447, 6 U.N.Rep.ht'1 Arb. Awards 358, 336 (1955).
             29.  See.  e.g., Dispatch from Lord Palmerston to British Envoy at Athens, Aug. 7, 1846.39   serious and farreaching consequences would flow from a judicial finding
           Britishand Foreign State Papers 1849-1850.431-432. NotefmmSccrcrary ofstate Hull to Mex-  that international law standards had been met if that determination flew
           ican Amhsador, July 21, 1938, V Foreign Relations of the Unical States 674 (1938); Note to   in the face of a State Department proclamation to the contrary. When
           the Cuban Government, July  16, 1960.43 Dept. State Bull.  171 (1960).   articulating principles of  international law  in  its  relations with  other
             30.  Sec. e.8.. McNsir,  The Sekure afProper(v and EnlerprLres In Indonesh, 6 Netherlands
           ht'l  L.Rev. 218,  243-253  (1959);  Restatement, Foreign Rebnons Luw afthe  Unlted Smtes   states,  the  Executive  Branch  speaks  not  only  as  an  interpreter of
           (ROW Offi Draft 1962), 55 190-195.                   generally accepted and traditional rules, as would the courts, but also as
             31.  See Doman, supra, note 26, at 1143-1158: Fleming,States,Contracts and R-,   an advocate of standards it believes desirable for the community of na-
                                                         Na-
           62-63 (1960); Bystridry. Notes on Certain Inter~do~I LegalProbIemRehnng to Sochll~t   tions and protective of national concerns. In short, whatever way  the
           ti~~kaH~n, InlernationaIAssn. afDemocraflc  Lawyers, Roawhgs of the CommiPsion on
                  In
           Rivstc laternational Law, Sixth Co-  (1956).  IS.    matter is cut, the possibility of conflict between the Judicial and Execu-
             32.  See Anand,  Role qf the  "New" Ashn-Nrlcan Countries ln the Pwnt 1nlernaHo~l   tive Branches could hardly be avoided.
           &I   Order, 56 Am.J.ht'l  L. 383 (1962); Roy, Is the hw qfResponslblH@ afStateafor  I&-  Respondents contend that, even if there is not agreement regarding
           rks to Akm a Part qf  Un~wncrl Inler~HonalL.aw7 55 Am.J.lnt'1 L. 863 (1961).
             33.  See 1957 Yb.U.N.lnt'l  L. Comm'n (Vol.1)  155,158 (statements of Mr. PsdillaNmo   I
           (Mexico) and Mr. Pal  (India)).                        35. See Restac~menr. Foreign RebHons Luw Jthe  United States,  Reporters'  Notes (Pro-
                                                          is
             w.  Then arc, of mum, areas of international law in which mmm as to s~~~dards  pcscd OflicislDraft 1962). § 43, note 3.
           €aw~terand which do not represent a battleground for wnIlic@  ideologies Tbis de&on  in no   M. It in, of mwse, true that such detenninations mi@  innumcc others not to bring ex-
           'my intimatesthat the mum of Ulismunw arc broadly foredosed from considering queslions of   proprialed property into the munw, * * * so their indirut impad might exlend beyond the ac-
           intemationsl law.                                    lud invalidations of title.
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