Section 5 of the Panama Canal Act are in favour of vessels of the

United States, they comprise a violation of Article III, No. 1, of the

Hay-Pauncefote Treaty which stipulates that the vessels of all nations

shall be treated on terms of entire equality.

This assertion made by Great Britain is met by the Memorandum which,

when signing the Panama Canal Act, President Taft left to accompany the

Act. The President contends that, in view of the fact that the Panama

Canal has been constructed by the United States wholly at her own cost,

upon territory ceded to her by the Republic of Panama, the United

States possesses the power to allow her own vessels to use the Canal

upon _such terms as she sees fit_, and that she may, therefore, permit

her vessels to pass through the Canal either without the payment of any

tolls, or on payment of lower tolls than those levied upon foreign

vessels, and that she may remit to her own vessels any tolls which may

have been levied upon them for the use of the Canal. The President

denies that Article III, No. 1, of the Hay-Pauncefote Treaty can be

invoked against such power of the United States, and he contends that

this Article III was adopted by the United States for a specific

purpose, namely, as a basis of the neutralisation of the Canal, and for

no other purpose. This article, the President says, is a declaration of

policy by the United States that the Canal shall be neutral; that the

attitude of the Government of the United States is that all nations

will be treated alike and no discrimination is to be made against any

one of them observing the five conditions enumerated in Article III,

Nos. 2-6. The right to the use of the Canal and to equality of

treatment in the use depends upon the observance of the conditions by

the nations to whom the United States has extended that privilege. The

privileges of all nations to which the use of the Canal has been

granted subject to the observance of the conditions for its use, are to

be equal to the privileges granted to any one of them which observes

those conditions. In other words--so the President continues--the

privilege to use the Canal is a conditional most-favoured-nation

treatment, the measure of which, in the absence of an express

stipulation to that effect, is not what the United States gives to her

own subjects, but the treatment to which she submits other nations.

From these arguments of the President it becomes apparent that the

United States interprets Article III, No. 1, of the Hay-Pauncefote

Treaty as stipulating no discrimination against _foreign_ nations, but

as leaving it open to her to grant any privilege she likes to her own

vessels. According to this interpretation, the rules for the use of the

Canal are merely a basis of the neutrality which the United States was

willing should be characteristic of the Canal, and are not intended to

limit or hamper the United States in the exercise of her sovereign

power in dealing with her own commerce or in using her own Canal in

whatever manner she sees fit. The President specifically claims the

right of the United States eventually to allow her own vessels to use

the Canal without the payment of any tolls whatever, for the reason

that foreign States could not be prevented from refunding to their

vessels tolls levied upon them for the use of the Canal. If foreign

States, but not the United States, had a right to do this--so the

President argues--the irresistible conclusion would be that the United

States, although she owns, controls, and has paid for the construction

of the Canal, is restricted by the Hay-Pauncefote Treaty from aiding

her own commerce in a way open to all other nations. Since the rules of

the Hay-Pauncefote Treaty did not provide, as a condition for the

privilege of the use of the Canal upon equal terms with other nations,

that other nations desiring to build up a particular trade, involving

the use of the Canal, should neither directly agree to pay the tolls

nor refund to their vessels tolls levied, it is evident that the

Hay-Pauncefote Treaty does not affect the right of the United States to

refund tolls to her vessels, unless it is claimed that rules ensuring

all nations against discrimination would authorise the United States to

require that no foreign nation should grant to its shipping larger

subsidies or more liberal inducements to use the Canal than were

granted by any other nation.

II.

It cannot be denied that at the first glance the arguments of the

United States appear to be somewhat convincing. On further

consideration, however, one is struck by the fact that the whole

argumentation starts from, and is based upon, an absolutely wrong

presupposition, namely, that the United States is not in any way

restricted by the Hay-Pauncefote Treaty with regard to the Panama

Canal, but has granted to foreign nations the use of the Canal under a

conditional most-favoured-nation clause.

This presupposition in no way agrees with the historical facts. When

the conclusion of the Hay-Pauncefote Treaty was under consideration, in

1901, the United States had not made the Canal, indeed did not own the

territory through which the Canal has now been made; nor was the United

States at that time absolutely unfettered with regard to the projected

Canal, for she was bound by the stipulations of the Clayton-Bulwer

Treaty of 1850. Under this treaty she was bound by more onerous

conditions with regard to a future Panama Canal than she is now under

the Hay-Pauncefote Treaty. Since she did not own the Canal territory

and had not made the Canal at the time when she agreed with Great

Britain upon the Hay-Pauncefote Treaty, she ought not to maintain that

she granted to foreign nations the privilege of using _her_ Canal

under a conditional most-favoured-nation clause, she herself remaining

unfettered with regard to the conditions under which she could allow

her own vessels the use of the Canal. The historical facts are five in

number:--

Firstly, in 1850, Great Britain and the United States, by the

Clayton-Bulwer Treaty, agreed that neither of them would ever obtain or

maintain for herself any exclusive control over a future Panama Canal,

or fortify it, or occupy or colonise any part of Central America; that

the Canal should be neutralised, should be open to the vessels of all

nations under conditions of equality; and so forth.

Secondly, in 1901, the two parties to the Clayton-Bulwer Treaty agreed

to substitute for it the Hay-Pauncefote Treaty, Article II of which

expressly stipulates _inter alia_ that the Canal may be constructed

under the auspices of the Government of the United States and that the

said Government, _subject to the provisions of Articles III and IV_,

shall have the exclusive right of providing for the regulation and

management of the Canal.

Thirdly, the parties agreed--see the preamble of the Hay-Pauncefote

Treaty--that the general principle of the neutralisation of the Canal

as established by the Clayton-Bulwer Treaty should not be impaired, and

that, therefore, the United States--see Article III of the

Hay-Pauncefote Treaty--agrees to adopt as the basis of the

neutralisation of the Canal certain rules, substantially the same as

those embodied in the Suez Canal Convention of 1888, and amongst these

a rule concerning the use of the Canal by vessels of all nations on

terms of entire equality without discrimination against any such

nation, or their citizens or subjects, in respect of the conditions or

charges of traffic, or otherwise, such conditions and charges to be

just and equitable.

Fourthly, the parties agreed--see Article IV of the Hay-Pauncefote

Treaty--that no change of the territorial sovereignty or of the

international relations of the country or countries traversed by the

future Canal should affect the general principle of the neutralisation

or the obligation of the parties under the Hay-Pauncefote Treaty.

Fifthly, when, in 1903, the United States by the Hay-Varilla Treaty,

acquired from the Republic of Panama the strip of territory necessary

for the construction, administration, and protection of the Canal, she

acquired sovereign rights over this territory and the future Canal

_subject to the antecedent restrictions imposed upon her by the

Hay-Pauncefote Treaty_, for Article IV of the latter stipulates

expressly that _no_ change of territorial sovereignty over the

territory concerned shall affect the neutralisation or obligation of

the parties _under the treaty_.

These are the unshakable historical facts. The United States did not

_first_ become the sovereign of the Canal territory and make the Canal,

and _afterwards_ grant to foreign nations the privilege of using the

Canal under certain conditions. No, she has never possessed the power

of refusing to grant the use of the Canal to vessels of foreign nations

on terms of entire equality, should she ever make the Canal. Free

navigation through the Canal for vessels of all nations on terms of

entire equality, provided these nations were ready to recognise the

neutrality of the Canal, was stipulated by the Clayton-Bulwer Treaty,

and this stipulation was essentially upheld by the Hay-Pauncefote

Treaty, and it was not until two years after the conclusion of the

Hay-Pauncefote Treaty that the United States acquired sovereign rights

over the Canal territory and made preparations for the construction of

the Canal. For this reason the contention of the United States that she

has granted to foreign nations the use of the Canal under certain

conditions and that such grant includes a conditional most-favoured-nation

treatment, is absolutely baseless and out of place. She has not granted

anything, the free use of the Canal by vessels of all nations having

been the condition under which Great Britain consented to the

abrogation of the Clayton-Bulwer Treaty and to the stipulation of

Article II of the Hay-Pauncefote Treaty according to which--in

contradistinction to Article I of the Clayton-Bulwer Treaty--the United

States is allowed to have a canal constructed under her auspices.

III.

If the assertion of the United States that she herself is entirely

unfettered in the use of the Canal, and that the conditions imposed

upon foreign vessels in return for the privilege of using the Canal

involve a most-favoured-nation treatment, were correct, the United

States would not be bound to submit to the rules laid down by Article

III, Nos. 2-6, of the Hay-Pauncefote Treaty. She could, therefore, if

she were a belligerent, commit acts of hostility in the Canal against

vessels of her opponent; could let her own men-of-war revictual or take

in stores within the Canal even if there were no strict necessity for

doing so; could embark and disembark troops, munitions of war, or

warlike materials in the Canal, although all these were destined to be

made use of during the war generally, and not only for the defence of

the Canal against a possible attack. There ought, however, to be no

doubt that the United States is as much bound to obey the rules of

Article III of the Hay-Pauncefote Treaty as Great Britain or any other

foreign State. These rules are intended to invest the Canal with the

character of neutrality. If the United States were not bound to obey

them, the Canal would lose its neutral character, and, in case she were

a belligerent, her opponent would be justified in considering the Canal

a part of the region of war and could, therefore, make it the theatre

of war. The mere fact that Article III of the Hay-Pauncefote Treaty

refers to the rules in existence concerning the neutralisation of the

Suez Canal, and that Article IV of the Suez Canal Treaty of 1888

expressly stipulates the neutralisation of the Canal even should Turkey

be a belligerent, ought to be sufficient to prove that the

neutralisation of the Panama Canal is stipulated by the Hay-Pauncefote

Treaty even should the United States be a belligerent.

Furthermore, one must come to the same conclusion if one takes into

consideration the objects, which are three in number, of the

neutralisation of an inter-oceanic canal.

The first object is that a canal shall be open in time of war as well

as in time of peace, so that navigation through the canal may be

unhampered by the fact that war is being waged. If the canal were not

neutralised, the territorial sovereign would be compelled, if he were

neutral in a war, to prevent the passing through the canal of

men-of-war of either belligerent, because such passage would be

equivalent to the passage of belligerent troops through neutral land

territory.

The second object is that the territorial sovereign shall be prevented

from closing a canal or interfering with the free use of it by vessels

of all nations in case he himself is a party to a war. If the canal

were not neutralised, the belligerent territorial sovereign could,

during the war, close the canal or interfere with its free use by

neutral vessels.

The third object is that a canal shall not be damaged, nor navigation

thereon be prevented or hampered by the opponent in case the

territorial sovereign is himself a belligerent. If the canal were not

neutralised, it could be blockaded, militarily occupied, and

hostilities could be committed there.

With these points in mind one may well ask whether it was worth while

to agree at all upon the five rules of Article III, Nos. 2-6, of the

Hay-Pauncefote Treaty if the United States were not to be considered

bound by these rules. That two years after the conclusion of the

Hay-Pauncefote Treaty the United States acquired sovereign rights over

the Canal territory and that she is at present the owner of the Canal

has not, essentially at any rate, altered the case, for Article IV of

the Hay-Pauncefote Treaty stipulates that a change of territorial

sovereignty over the Canal territory should not affect the obligation

of the contracting parties under that treaty.

If this is correct, it might be maintained that the United States is,

under the Hay-Pauncefote Treaty, subjected to more onerous conditions

than Turkey and Egypt are under the Suez Canal Treaty, for Article X of

the latter stipulates that Egypt and Turkey shall not by the

injunctions of Articles IV, V, VII, and VIII of the same treaty be

considered to be prevented from taking such measures as might be

necessary to ensure the defence of Egypt and Turkey by their own armed

forces. But this opinion would not be justified because in this respect

the case of the Panama Canal is entirely different from that of the

Suez Canal. Whereas the Panama Canal is an outlying part of the United

States, and no attack on the main territory of the United States is

possible from the Panama Canal, an attack on Egypt as well as on Turkey

is quite possible from the Suez Canal. There is, therefore, no occasion

for the United States to take such measures in the Panama Canal as

might be necessary to ensure the defence of her main territory. Indeed

there might be occasion for her to take such measures in the Canal as

are necessary to ensure the defence of the Canal and the surrounding

territory, if a belligerent threatened to attack it. Although this case

is not directly provided for by the Hay-Pauncefote Treaty--in

contradistinction to Article XXIII of the Hay-Varilla Treaty--there is

no doubt that, since, according to Article II of the Hay-Pauncefote

Treaty, the United States shall have and enjoy all the rights incident

to the construction of the Canal as well as the exclusive right of

providing for the regulation and management of the Canal there is

thereby indirectly recognised the power of the United States to take

all such measures as might become necessary for the defence of the

Canal against a threatening attack. Apart from this case, the United

States, even if she herself were a belligerent, has no more rights in

the use of the Canal than her opponent or a neutral Power; on the

contrary, she is as much bound as these Powers to submit to the rules

of Article III, Nos. 2-6, of the Hay-Pauncefote Treaty.

IV.

However this may be, the question as to whether the stipulation of

Article III, No. 1, of the Hay-Pauncefote Treaty that vessels of all

nations shall be treated on the basis of entire equality is meant to

apply to vessels of all nations without exception, or only to the

vessels of _foreign_ nations and not to those of the United States, can

only be decided by an interpretation of Article III which takes the

whole of the Hay-Pauncefote Treaty as well as the Clayton-Bulwer Treaty

into consideration.

(1) There is no doubt that according to the Clayton-Bulwer Treaty the

future Canal was to be open on like terms to the citizens of all

nations including those of the United States, for Article VIII

expressly stipulates "that the same canals or railways, being open to

the subjects and citizens of Great Britain and the United States on

equal terms, shall also be open on like terms to the subjects and

citizens of every other State which...."

(2) The Clayton-Bulwer Treaty has indeed been superseded by the

Hay-Pauncefote Treaty, but it is of importance to notice the two facts,

expressed in the preamble of the latter:--(_a_) that the only motive

for the substitution of the latter for the former treaty was to remove

any objection which might arise under the Clayton-Bulwer Treaty to the

construction of the Canal under the auspices of the Government of the

United States; (_b_) that it was agreed that the general principle

of neutralisation as established by Article VIII of the Clayton-Bulwer

Treaty should not be considered to be impaired by the new treaty. Now

the equal treatment of American, British, and any other nation's

vessels which use the Canal is part and parcel of the general principle

of neutralisation as established by Article VIII of the Clayton-Bulwer

Treaty, and such equal treatment must, therefore, be considered not to

have been impaired by Article III of the Hay-Pauncefote Treaty.

(3) Article III of the Hay-Pauncefote Treaty stipulates--as a

consequence of the fact, expressed in the preamble of the Treaty, that

the general principle of neutralisation of the Canal as established by

Article VIII of the Clayton-Bulwer Treaty shall not be impaired by the

Hay-Pauncefote Treaty--that the United States adopts, as the basis of

the neutralisation of the Canal, six rules _substantially as embodied

in the Suez Canal Treaty of Constantinople of 1888_. Now although the

Suez Canal Treaty nowhere directly lays down a rule which is identical

with the rule of Article III, No. 1, of the Hay-Pauncefote Treaty,

it nevertheless insists upon equal treatment of the vessels of all

nations by stating in Article XII:--"The high contracting parties, _in

application of the principle of equality concerning the free use of the

canal, a principle which forms one of the bases of the present treaty_,

agree that...." That this principle of equality of all nations

concerning the free use of the Suez Canal means equality of vessels of

all nations with the exception of the vessels of Egypt or even of

Turkey, has never been contended; such a contention would, I am sure,

have been objected to by the parties to the Suez Canal Treaty. For this

reason the term "all nations" in the Hay-Pauncefote Treaty can likewise

only mean _all_ nations, including the United States.

(4) The literal meaning of the words "all nations" leads to the same

conclusion. If something is stipulated with regard to "all" nations,

every nation is meant without exception. If an exception had been

contemplated, the words "all nations" could not have been used, and if

all foreign nations only were contemplated, the words "all foreign

nations" would have been made use of.

(5) There is also an argument from Article IV of the Hay-Pauncefote

Treaty which states that no change of territorial sovereignty or of the

international relations of the country or countries traversed by the

Canal should affect the general principle of neutralisation or the

obligation of the high contracting parties under the treaty. The

general principle of neutralisation is, as laid down in the preamble of

the Hay-Pauncefote Treaty, the general principle of neutralisation as

established by Article VIII of the Clayton-Bulwer Treaty, and it has

already been shown--see above IV, No. 2, p. 24--that equal treatment of

British, American, and any other nation's vessels using the Canal is

part and parcel of that general principle of neutralisation.

(6) Lastly, Article IV of the Hay-Pauncefote Treaty must be read in

conjunction with Article II. The latter does not exclusively

contemplate the construction of the Canal by the United States, it

contemplates rather the construction _under the auspices of the United

States, either_ directly at her cost, _or_ by gift or loan of money to

individuals or corporations, _or_ through subscription to or purchase

of stocks and shares. The question may well be asked whether, in case

the United States had not acquired the Canal territory and had not

herself made the Canal, but had enabled a company to construct it by

the grant of a loan, or by taking shares, and the like, she would then

also have interpreted the words "all nations" to mean "all foreign

nations," and would, therefore, have claimed the right to insist upon

her own vessels enjoying such privileges in the use of the Canal as

need not be granted to vessels of other nations. Can there be any doubt

that she would _not_ have done it? And if we can reasonably presume

that she would not have done it under those conditions, she cannot do

it now after having acquired the Canal territory and having herself

made the Canal, for Article IV declares that a change in the

territorial sovereignty of the Canal territory shall neither affect the

general principle of neutralisation nor the obligation of the parties

under the treaty.

V.

I have hitherto only argued against the contention of President Taft

that the words "all nations" mean all foreign nations, and that,

therefore, the United States could grant to her vessels privileges

which need not be granted to vessels of other States using the Panama

Canal. For the present the United States does not intend to do this,

although Section 5 of the Panama Canal Act--see above I, p. 6--empowers

the President to do it within certain limits. For the present the

Panama Canal Act exempts only vessels engaged in the American coasting

trade from the payment of tolls, and the memorandum of President Taft

maintains that this exemption does not discriminate against foreign

vessels since these, according to American Municipal Law, are entirely

excluded from the American coasting trade and, therefore, cannot be in

any way put to a disadvantage through the exemption from the payment of

the Canal tolls of American vessels engaged in the American coasting

trade.

At the first glance this assertion is plausible, but on further

consideration it is seen not to be correct, for the following reasons:

(1) According to Article III, No. 1, of the Hay-Pauncefote Treaty the

charges for the use of the Canal shall be just and equitable. This can

only mean that they shall not be higher than the cost of construction,

maintenance, and administration of the Canal requires, and that every

vessel which uses the Canal shall bear a proportionate part of such

cost. Now if all the American vessels engaged in the American coasting

trade were exempt from the payment of tolls, the proportionate part of

the cost to be borne by other vessels will be higher, and, therefore,

the exemption of American coasting trade vessels is a discrimination

against other vessels.

(2) The United States gives the term "coasting trade" a meaning of

unheard-of extent which entirely does away with the distinction between

the meaning of coasting trade and colonial trade hitherto kept up by

all other nations. I have shown in former publications--see the _Law

Quarterly Review_, Vol. XXIV (1908), p. 328, and my treatise on

International Law, 2nd edition (1912), Vol. I, Sec.579--that this attitude

of the United States is not admissible. But no one denies that any

State can exclude foreign vessels not only from its coasting trade, but

also from its colonial trade, as, for instance, France, by a law of

April 2, 1889, excluded foreign vessels from the trade between French

and Algerian ports. I will not, therefore, argue the subject again

here, but will only take into consideration the possibility that Great

Britain, and some other States, might follow the lead of America and

declare all the trade between the mother countries and ports of their

colonies to be coasting trade, and exclude foreign vessels therefrom.

Would the United States be ready then to exempt coasting trade vessels

of foreign States from the payment of Panama tolls in the same way that

she has exempted her own coasting trade vessels? If she would not--and

who doubts that she would not?--she would certainly discriminate in

favour of her own vessels against foreign vessels. Could not the

foreign States concerned make the same assertion that is now made by

the United States, viz. that, foreign vessels being excluded from their

coasting trade, the exemption of their own coasting trade vessels from

tolls did not comprise a discrimination against the vessels of other

nations? The coasting trade of Russia offers a practical example. By a

Ukase of 1897 Russia enacted that trade between any of her ports is to

be considered coasting trade, and the trade between St Petersburg and

Vladivostock is, therefore, coasting trade from which foreign vessels

are excluded. Will the United States, since the Panama Canal Act

exempts all American coasting trade vessels from the Panama Canal tolls

be ready to exempt Russian coasting trade vessels likewise? Surely the

refusal of such exemption would be a discrimination against Russian in

favour of American coasting trade vessels!

(3) The unheard-of extension by the United States of the meaning of the

term coasting trade would allow an American vessel sailing from New

York to the Hawaiian Islands, but touching at the ports of Mexico or of

a South American State, after having passed the Panama Canal, to be

considered as engaged in the coasting trade of the United States. Being

exempt from paying the Canal tolls she could carry goods from New York

to the Mexican and South American ports concerned at cheaper rates than

foreign vessels plying between New York and these Mexican and South

American ports. There is, therefore, no doubt that in such cases the

exemption of American coasting trade vessels from the tolls would

involve a discrimination against foreign vessels in favour of vessels

of the United States.

(4) It has been asserted that the wording of Article III, No. 1, of the

Hay-Pauncefote Treaty only prohibits discrimination _against_ some

particular nation, and does not prohibit a _special favour_ to a

particular nation, and that, therefore, special favours to the coasting

trade vessels of the United States are not prohibited. But this

assertion is unfounded, although the bad drafting of Article III, No.

1, lends some slight assistance to it. The fact that in this article

the words "so that there shall be no discrimination against any such

nation" are preceded by the words "the canal shall be free and open to

the vessels of commerce and of war of all nations observing these

rules, _on terms of entire equality_," proves absolutely that any

favour to any particular nation is prohibited because it must be

considered to involve a discrimination against other nations.

VI.

There is one more contention in the memorandum of President Taft in

favour of the assertion that the United States is empowered to exempt

all her vessels from the Panama Canal tolls. It is thefollowing:--Since

the rules of the Hay-Pauncefote Treaty do not provide, as a condition

for the privilege of using the Canal upon equal terms with other

nations, that other nations desiring to build up a particular trade

which involves the use of the Canal shall not either directly pay the

tolls for their vessels or refund to them the tolls levied upon them,

the United States could not be prevented from doing the same.

I have no doubt that this contention is correct, but paying the tolls

direct for vessels using the Canal or refunding to them the tolls

levied is not the same as exempting them from the payment of tolls.

Since, as I have shown above in V (1), p. 30, every vessel using the

Canal shall, according to Article III, No. 1, of the Hay-Pauncefote

Treaty, bear a proportionate part of the cost of construction,

maintenance, and administration of the Canal, the proportionate part of

such cost to be borne by foreign vessels would be higher in case the

vessels of the United States were exempt from the payment of tolls. For

this reason the exemption of American vessels would involve such a

discrimination against foreign vessels as is not admissible according

to Article III, No. 1.

VII.

With regard to the whole question of the interpretation of Article III

of the Hay-Pauncefote Treaty, the fact is of interest that prominent

members of the American Senate as well as a great part of the more

influential American Press, at the time the Panama Canal Act was under

the consideration of the Senate, emphatically asserted that any special

privileges to be granted to American vessels would violate this

Article. President Taft, his advisers, and the majority of the Senate

were of a different opinion, and for this reason the Panama Canal Act

has become American Municipal Law.

It is likewise of interest to state the fact that the majority of the

Senate as constituted thirteen years ago took a different view from the

majority of the present Senate, a fact which becomes apparent from an

incident in the Senate in December 1900, during the deliberations on

the Hay-Pauncefote Treaty of February 5, 1900, the unratified precursor

of the Hay-Pauncefote Treaty of November 18, 1901. Senator Bard moved

an amendment, namely, that the United States reserves the right in the

regulation and management of the Canal to discriminate in respect of

the charges of the traffic in favour of vessels of her own citizens

engaged in the American coasting trade, but this amendment was rejected

by 43 to 27 votes. As Article II, No. 1, of the unratified

Hay-Pauncefote Treaty of 1900 comprises a stipulation almost identical

with that of Article III, No. 1, of the present Hay-Pauncefote Treaty,

there can be no doubt that the Bard amendment endeavoured to secure

such a privilege to American coasting trade vessels as the United

States now by the Panama Canal Act grants to these vessels. But the

Bard amendment was defeated because the majority of the Senate was, in

1900, convinced that it involved a violation of the principle of

equality for vessels of all nations pronounced by Article II, No. 1, of

the unratified Hay-Pauncefote Treaty of 1900.

VIII.

The conflict concerning the interpretation of the Hay-Pauncefote Treaty

throws a flood of light on the practice of the United States respecting

the relations between International Law and her Municipal Law.

Two schools may be said to be opposing one another in the science of

International Law with regard to the relations between International

and Municipal Law.

There are, firstly, a number of publicists who assert that International

Law is above Municipal Law and that, therefore, the rules of the former

are stronger than the rules of the latter. Accordingly, a Municipal

Court would have to apply the rules of International Law whether they

are expressly or implicitly recognised by the Municipal Law of the

State concerned or not, and even in a case where there is a decided

conflict between a rule of Municipal Law and a rule of International

Law. "_International Law overrules Municipal Law_" must be said to be

the maxim of this school of thought.

There are, secondly, other publicists who maintain that _International

Law and Municipal Law are two essentially different bodies of law_

which have nothing in common but that they are both branches--but

separate branches!--of the tree of Law. The rules of International Law

are never, therefore, _per se_ part and parcel of the Municipal Law of

a State, and a Municipal Court cannot apply the rules of International

Law unless they have been adopted, either expressly or implicitly, by

the Municipal Law of the State concerned. Should there be a conflict

between a rule of International Law and a rule of Municipal Law, a

Municipal Court can only apply the rule of Municipal Law, leaving it to

the legislature of its State to do away with the conflict by altering

the Municipal Law.

I believe that the teaching of the latter school of thought is

correct[2] since International and Municipal Law differ as regards

their sources, the relations they regulate, and the substance of their

law. Rules of International Law can, therefore, only be applied by

Municipal Courts in their administration of the law in case and in so

far as such rules have been adopted into Municipal Law either by a

special Act of the legislature, or by custom, or implicitly.

[2] See my treatise on International Law, 2nd edition (1912),

Vol. I, Sec.Sec.20-25.

Now the practice of the Courts[3] of the United States neither agrees

with the doctrine of the former nor with the doctrine of the latter

school of publicists, but takes a middle line between them. Indeed it

considers International Law to be part and parcel of the Municipal Law

of the United States. It is, however, far from accepting the maxim that

International Law overrules Municipal Law, it accepts rather two

maxims, namely, first, that _International Law overrules previous

Municipal Law_, and, secondly, that _Municipal Law overrules previous

International Law_. In the administration of the law American Courts

hold themselves bound to apply the Acts of their legislature even in

the case in which the rules of these enactments are not in conformity

with rules of previous International Law. It is true that, according to

Article VI of the American Constitution, all international treaties of

the United States shall be the supreme law of the land, but in case an

Act of Congress contains rules not in agreement with stipulations of a

previous international treaty, the American Courts consider themselves

bound by the Act of Congress, and not by the stipulations of the

previous treaty. It is obvious that, according to the practice of the

Courts of the United States, International Law and Municipal Law are of

_equal_ force, so that on the one hand new rules of International

Law supersede rules of previous Municipal Law, and, on the other hand,

new rules of Municipal Law supersede rules of previous International

Law. For this reason, the American Courts cannot be resorted to in

order to have the question decided whether or no the enactments of

The Panama Canal Conflict between Great Britain and the United States of America A Study · 第 3 / 4 章