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International Law and Problems of Raw Materials

Published online by Cambridge University Press:  12 April 2017

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Abstract

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Type
Editorial Comment
Copyright
Copyright © American Society of International Law 1938

References

1 Eugene Staley, Raw Materials in Peace and War (1937), p. 238: “… not all current political demands with respect to raw materials are due to genuine conflicts of interest that could be relieved by changes in the raw material situation. Some demands may be conscious pretexts, others a manifestation of economic and social insecurities, which are projected by an irrational psychological process into the raw material field.”

Less technical is the reported statement of Bernard, M. Baruch that “The story of access to raw materials is the biggest hokum in the world. What they really want is something for nothing.” New York Times, Sept. 7, 1937, p. 14.Google Scholar

2 Report of Komarnicki, M. to the Council of the League of Nations, Official Journal, February, 1937, p. 106.Google Scholar

3 Manchester Guardian Weekly, July 23, 1937, p. 79.

4 New York Times, Aug. 15, 1937, IV, 4,5; Sept. 3,1937, p. 4. The latter reference is to a report of agreements said to have been drawn up between Italy and Germany, respectively, and General Franco, whereby the latter would pay for war materials and military assistance with certain raw materials.

5 New York Times, Aug. 8, 1937, I, 12. See also Press Releases, U. S. Department of State, Aug. 21, 1937, pp. 162–163.

6 Julius, L. Goebel, The Struggle for the Falkland Islands (1927), p. 468.Google Scholar

7 See, for example, Borchard, E. M. in Proc. Amer. Soc. Int. Law, 1923, pp. 6970.Google Scholar

8 Henry, Wheaton, Elements of International Law (Danna, R. H. ed., 1866), p. 23.Google Scholar

9 See the report referred to in note 21, infra. The Committee, while feeling that each country had “first call” on its own resources for the benefit of its domestic industry, did not regard as “proper” the use of a power of prohibition or restriction, irrespective of the actual state of supplies of the commodity, simply for the purpose of putting pressure on another country (pp. 12–14).

10 Lauterpacht, H., The Function of Law in the International Community (1933), Ch. XIV.Google Scholar

11 See, for example, Friedmann, W., “The Challenge to International Law”, Fortnightly Review, Oct., 1937, pp. 432440 Google Scholar

12 One writer on “Imperial Economic Development” has recently commented as follows: “Far-reaching adjustments … could only be effected, with any celerity, by some supernational, or perhaps I ought to say some supernatural, body with all nations represented in it; and some international force for promoting collective trade to provide and to police some world trade agreement. The creation of such a body is beyond the bounds of practical politics. Much as we regret the position, we must accept it as a fact if we are realists.” B. S. B. Stevens, in International Affairs, XV, No. 6 (Nov.–Dec, 1936), pp. 863, 870.

13 Publications of the Permanent Court of International Justice, Series A, No. 10 (A/B No. 22), p. 18; Series A/B No. 46, p. 162. These pronouncements can hardly be used to prove that a state may legally do anything that it has not agreed to refrain from doing. See Lauterpacht, H., The Development of International Law by the Permanent Court of International Justice (1934), pp. 103104.Google Scholar

14 Publications of the Permanent Court of International Justice, Series B, No. 4 (A/B No. 3)., p. 24.

15 Cf. Leith, C. K., World Minerals and WorldTolitics (1931), p. 115: “The present worldwide trend toward nationalization is not entirely new in history, though it has taken on new aspects. In the early small beginnings of the use of minerals it was the rule rather than the exception for the crown to retain ownership of precious metals and stones, and later even of iron, copper, and other metals essential to military preparation. This is true of all the countries of Europe. Later this control became more or less separated from the crown in some countries by dispersion through the noble classes or by leases and concessions. Only in England was this carried through to a stage of complete private ownership, and this principle was later the dominant one governing the disposition of mineral resources in all Englishspeaking countries. The major separation of minerals from state control went on during the period of the industrial revolution. At the same time many countries, particularly in Europe, never departed from the earlier form of control.” Google Scholar

16 41 Stat. 437–447, especially the provision respecting reciprocity as to aliens, at p. 438. On the latter point, there is also the Convention on Non-Application of the Most-Favored-Nation Clause in Respect of Certain Multilateral Economic Conventions, Sess. Laws, 74th Cong., 2nd Sess., Pt. II, pp. 843–848.

17 49 Stat. 1140.

18 99 British and Foreign State Papers, p. 141; this JOURNAL, Supp., Vol. 1 (1907), p. 47.

19 104 British and Foreign State Papers, p. 948; this JOURNAL, Supp., Vol. 6 (1912), p. 62.

20 League of Nations Official Journal, Spl. Supp. No. 138 (1935), pp. 43–46. Further action is recorded in ibid., Spl. Supp. No. 157 (1936).

21 Report of the Committee for the Study of the Problem of Raw Materials, League Doc. A. 27.1937. II. B., pp. 16,17, 21. The Committee had the collaboration of experts from the United States, Brazil and Japan, but did not have the assistance of a German expert or the collaboration of an Italian expert.

22 Report cited, p. 16. The bad effects of a sudden influx of capital, or of mass immigration, are envisaged. A question may be raised as to the strictly legal significance of the Committee's observation that “It should be recognized that the Governments of countries which are important suppliers, actual or potential, of raw materials have a responsibility not unreasonably to hamper the development of their raw materials,” and that such states should take into account “the interdependence of all countries.” (Idem., p. 16.)

23 The Russian expert, in a separate declaration, expressed regret that the Committee had not shown sufficiently how the problem of raw materials was affected by present-day conditions, such as those connected with armaments, aggressive and warlike purposes. (Report, p. 30.)

24 >Hjalmar, Schacht, “Germany's Colonial Demands”, For. Affairs, XV, No. 2 (Jan., 1937), p. 234. A more detailed statement of Germany's case is in VMkerbund, Nr. 192–206 (May/July, 1937). The League Committee found that, if dominions and other self-governing territories be excluded, only about three per cent, of all commercially important raw materials are produced in all colonial territories. (Report, p. 10.) Hjalmar,+Schacht,+“Germany's+Colonial+Demands”,+For.+Affairs,+XV,+No.+2+(Jan.,+1937),+p.+234.+A+more+detailed+statement+of+Germany's+case+is+in+VMkerbund,+Nr.+192–206+(May/July,+1937).+The+League+Committee+found+that,+if+dominions+and+other+self-governing+territories+be+excluded,+only+about+three+per+cent,+of+all+commercially+important+raw+materials+are+produced+in+all+colonial+territories.+(Report,+p.+10.)>Google Scholar

25 Remarks of Yepes, M. (Colombia), League of Nations Official Journal, Spl. Supp. No. 157, p. 70.Google Scholar

26 New York Times, June 25, 1937, p. 33.

27 Remarks of Rose, M. (Poland), League of Nations Official Journal, Spl. Supp. No. 157, p. 46. The specific project referred to is in League Doc. C. 375. M. 155. 1931. II. A.Google Scholar

28 Eugene Staley, op. cit., p. 253: “International trade in raw materials appears to be entering an epoch that will be characterized relatively less by competition between individual producing enterprises within each industry and relatively more by competition between great cartels or combinations or control boards, each striving to promote sales and maintain prices for its commodity.”

29 Ibid., p. 308. See also Holland, W. L., ed., Commodity Control in the Pacific Area (1935), Chs. XII, XIII.Google Scholar

30 Cf. John, C. de Wilde, “Raw Materials in World Politics”, For. Policy Reports, XII, 162–176 (Sept. 15, 1936), and a pamphlet on “Colonies, Trade and Prosperity” Google Scholar, prepared by Maxwell, S. Stewart for the Public Affairs Committee (1937). Consideration of the interests of consumers, and the need of publicity, are stressed in the League Committee's Report (p. 18).Google Scholar

31 See, for example, Zimmermann, E. W., World Resources and Industries (1933), p. 807.Google Scholar

32 Cf. Report of the Economic Committee to the Council of the League of Nations, on the Present Phase of International Economic Relations, League Doc. C. 358. M. 242.1937. II. B., p. 13 and annex.