DIVISIONAL COURT WEST RAND CENTRAL GOLD MINING COMPANY,
LIMITED v. THE KING. [1905] 2 K.B. 391 COUNSEL: Sir R. Finlay, A.-G.,
and Sir E. Carson, S.-G. (H. Suttonwith them), for the Crown. Lord R. Cecil, K.C., and J. A. Hamilton, K.C. (Theobald Mathew and A. M.
Talbot with them), for the suppliants. SOLICITORS: For suppliants:
Waltons, Johnson, Bubb & Whatton. For the Crown: Solicitor to the Treasury. JUDGES: Lord Alverstone C.J.,
Wills and Kennedy JJ. DATES: 1905 May 3, 4; June 1. Petition of Right International Law Annexation
Liabilities of Conquered State Creditors Rights
against Conqueror Act of State Jurisdiction of Municipal
Courts. A petition of right alleged that, before the outbreak of war between the
late South African Republic and Great Britain, gold, the produce of a mine in
the Republic owned by the suppliants, had been taken from the suppliants by
officials acting on behalf of the Government of the Republic; that the
Government by the laws of the Republic was liable to return the gold or its
value to the suppliants; and that by reason of the conquest and annexation of
the territorities of the Republic by Her late Majesty the obligation of the
Government of the Republic towards the suppliants in respect of the gold was
now binding upon His Majesty the King. Held, on demurrer, that the petition disclosed no right on the part of
the suppliants which could be enforced against His Majesty in any municipal
Court. There is no principle of international law by which, after annexation of
conquered territory, the conquering State becomes liable, in the absence of
express stipulation to the contrary, to discharge financial liabilities of the
conquered State incurred before the outbreak of war. PETITION OF RIGHT by the West Rand Central Gold Mining Company, Limited. 1. The suppliants are a company registered in England under the
Companies Acts and owning and working a gold mine in His Majestys
Transvaal Colony. 2. On October 2, 1899, 283.90 ounces of gold of the value of 1104l., the
property of the suppliants, while in transit by train from Johannesburg to Cape
Town, were taken possession of at Vereeniging by an official of the late South
African Republic, namely, one Hugo, the resident magistrate of the district;
the said Hugo was acting upon the instructions of the State Attorney of the
said Republic, who ordered him to take the said gold into safe keeping. 3. The said Hugo gave for the said gold (together with other gold taken
at the same time) a receipt of which the following is a translation: Vereeniging Station. Seized this day by order of the
Attorney-General S. A. R. (117) one hundred and seventeen cases containing gold
and [*392]
valuables sealed as usual and conveyed by the mail train from Johannesburg. (Signed) J. S. N. Hugo, Res. J. P. 2 October, 1899. 4. Further, two bars of gold weighing 767.20 ounces of the value of
2700l., the property of the suppliants, and being then in the custody of the
African Banking Corporation of Johannesburg, were on October 9, 1899, taken
possession of upon the premises of the said bank by two officials of the
Government of the said Republic, namely, one Wagner and one Krause. 5. The said two officials gave for the said gold (together with other
gold taken at the same time) a sealed receipt of which the following is a
translation:– Received eight bars of raw gold
weighing 2617.23 ounces, value 8996l., namely: 1. M. K. C. 49 730.75 ozs. 2.
M.
124
395.85 ,, } African
Banking 3. O. T. S.
125.10 ,, }
Corporation 4.
39.35 ,, }
£4411. 5.
19.00 ,, }
{ o/a Worcester
Expn 6.
215
539.03 ,, { & G. M. Co.
£1885. 7.
149.55 ,, { o/a West Rand Central 8.
617.65 ,, { G. M. Co.
£2700. -------
2617.23 ,, From
African Banking Corporation, Limited,
Johannesburg.
(Sd) M. Wagner Mijn Inspecteur. (Sd)
F. E. T. Krause.
Government Commission of Peace and Order ---- upon instructions of State
Secretary. |Seal| On behalf of the Government
Commission, Witwatersrand, ---- 10 October, 1899, S. A. R. Division
of Peace
and Order.
(Sd) Martin Mulder,
(Sd) Joseph Van Gelder, Secretaries. [*393] 6. The said gold was in each case taken possession of by and on behalf
of and for the purposes of the then existing Government of the said Republic,
and the said Government by the laws of the said Republic was under a liability
to return the said gold or its value to your suppliants. None of the said gold
has been returned to the suppliants, nor did the Government make any payment in
respect thereof. 7. A state of war between Her late Majesty Queen Victoria and the said
Republic commenced at 5 P.M. on October 11, 1899. 8. Her late Majestys forces conquered the said Republic, and
by a Proclamation in the name of Her late Majesty dated September 1, 1900, the
whole of the territories of the said Republic were annexed to and became part
of Her dominions, and the late Government of the said Republic thereby ceased
to exist. 9. By reason of the said conquest and annexation Her late Majesty
succeeded to the Sovereignty of the said Government with all its rights and
duties and became entitled to the whole property of the said Government, and
the obligation which vested in the said Government in respect of the said gold
is now as binding upon His Majesty as though the acts and things which gave
rise to such obligation had been done or suffered by Her late Majesty. The suppliants therefore humbly pray the return of the said gold, or
payment to them of the said sum of 3804£. Demurrer: His Majestys Attorney-General on behalf of
our Lord the King gives the Court here to understand and be informed that the
petition of right is bad in substance and in law, in that it does not disclose
a sufficient or lawful or any obligation on His Majesty towards the suppliants,
or any legal or equitable right of the suppliants against His Majesty
cognizable by the Courts of this country or enforceable therein and on other
grounds sufficient in law to sustain this demurrer. Joinder: The petition herein is good in substance and in
law. (1) Sir R. Finlay, A.-G., and Sir E. Carson, S.-G. (H. Suttonwith them), for
the Crown. The facts alleged in the petition (1) There was a trial at bar for the hearing of the demurrer. [*394] of right disclose no obligation on the part of His Majesty towards the
suppliants, nor any right enforceable in this Court. Where the Sovereign
annexes a foreign country the terms on which he does so are settled by him, and
no Court of law has any power to interpret or enforce those terms. Cook v.
Sprigg (1) is the latest of a long series of
authorities which shew that annexation is an act of State, and that the
municipal Courts have no authority to enforce obligations assumed by the
conquering State under the treaty of annexation. [They referred to Nabob of the Carnatic v. East India Co. (2); Elphinstone v. Bedreechund
(3); Secretary of State in Council of India v. Kamachee Boye Sahaba (4); Ex Rajah of Coorg v. East India Co.
(5); Sirdar Bhagwan Singh v. Secretary of State for India (6); Doss v. Secretary of State for India (7); Rustomjee v. Reg. (8); The Commonwealth v. Sparhawk (9); United States v. Pacific Railroad.
(10)] To take an extreme case, if a conquering State confiscated all private
property in the conquered State, the owners of the property could not obtain
redress by means of litigation in the municipal Courts of the conquering State.
So, in the present case, His Majestys Government having declined to recognise
the suppliants claim, this Court has no power to adjudicate upon it.
The claim is in fact absolutely without foundation. Assuming that the Transvaal
Government were under some contractual obligation to indemnify the suppliants,
that obligation does not as a result of the annexation fall upon His Majesty.
There is no principle of international law by which a conquering State becomes
ipso facto liable to discharge all the contractual obligations of the conquered
State. Lord R. Cecil, K.C., and J. A. Hamilton, K.C. (Theobald Mathew and A. M.
Talbot with them), for the suppliants. For the purpose of this demurrer the
facts must be taken to be as (1) [1899] A. C. 572. (2) (1791) 1 Ves. Jr. 371; 2 Ves. Jr. 56. (3) (1830) 1 Knapp P. C. 316; 2 St. Tr. (N.S.) 379. (4) (1859) 13 Moo. P. C. 22; 7 Moores Ind. Ap. Ca. 476. (5) (1860) 29 Beav. 300. (6) (1874) L. R. 2 Ind. Ap. 38. (7) (1875) L. R. 19 Eq. 509. (8) (1876) 1 Q. B. D. 487; 2 Q. B. D. 69. (9) (1788) 1 Dallas, 383. (10) (1886) 13 Davis, 227. [*395] stated in the petition, and the case may therefore be argued on the
basis that the gold was taken by the Transvaal Government under its
constitutional powers, that the seizure was not made for the purpose of
hostilities, and that at the moment of annexation the Transvaal Government was
under an enforceable obligation to return the gold or its value. The case for
the suppliants may be put in the form of three propositions, the first of which
is that by international law, where one civilized State after conquest annexes
another civilized State, the conquering State, in the absence of stipulations
to the contrary, takes over and becomes bound by all the contractual
obligations of the conquered State, except liabilities incurred for the purpose
of or in the course of the particular war. The writings of jurists on
international law and stipulations in treaties are evidence of what is
international law, and the proposition in question is supported by the
following authorities: Halls International Law, 5th ed. p. 99;
Wheatons International Law, 4th ed. p. 46; Hallecks
International Law (Bakers 1878 ed.), vol. ii. p. 504;
Calvos Droit International, 4th ed. vol. i. p. 248; vol. iv. p. 404;
Heffters Droit International de lEurope, 4th ed. pp. 63,
64; Hubers Die Staatensuccession, s. 217. Secondly, international law
is part of the law of England. This question has been much considered in cases
relating to the rights and privileges of ambassadors: see Barbuits
Case (1); Triquet v. Bath (2); Heathfield v. Chilton
(3); Viveash v. Becker (4); cases dealing
with the seizure of debts: see Dolder v. Huntingfield (5); Wolff v. Oxholm (6); and cases
turning on the law as to territorial waters: see Reg. v. Keyn. (7) All these cases have been dealt with by the English Courts on the
footing that the principles of international law relating to them form part of
the common law of England. Thirdly, the English Courts have recognised and
adopted the particular principle of international law enunciated above as the (1) (1737) Cas. t. Tal. 281. (2) (1764) 3 Burr. 1478. (3) (1767) 4 Burr. 2016. (4) (1814) 3 M. & S. 284; 15 R. R. 488. (5) (1805) 11 Ves. Jr. 283; 8 R. R. 159. (6) (1817) 6 M. & S. 92; 18 R. R. 313. (7) (1876) 2 Ex. D. 63. [*396] first proposition: Calvins Case
(1); Blankard v. Galdy (2); Campbell v.
Hall. (3) The Sovereign has, it is admitted,
power when annexing a conquered State to impose what terms and conditions he
pleases as to the taking over of the obligations of the conquered State; but if
nothing is said about a particular obligation then it must be deemed to have
been taken over, and it can be enforced in the municipal Courts of the
conquering State. As soon as the annexation is complete the
Sovereigns absolute power to impose terms and conditions is at an
end, and the rights of the inhabitants of the conquered State must be
recognised and dealt with in the same way as those of the other subjects of the
Sovereign: Advocate-General of Bombay v. Amerchund (4); Mayor of Lyons v. East India Co.
(5); King of the Two Sicilies v. Willcox
(6); United States of America v. Prioleau
(7); United States v. McRae (8); Republic
of Peru v. Peruvian Guano Co. (9); Republic of
Peru v. Dreyfus (10); Frith v. Reg. (11) The American authorities support the contention of the suppliants.
In United States v. Percheman (12) Marshall
C.J. said: It is very unusual even in cases of conquest for the
conqueror to do more than to displace the Sovereign and assume dominion over
the country. The modern usage of nations which has become law would be
violated; that sense of justice and of right which is acknowledged and felt by
the whole civilized world would be outraged, if private property should be
generally confiscated and private rights annulled. [They also referred to Mitchel v. United States (13); Smith v. United States
(14); Strother v. Lucas. (15)] With regard to Cook v. Sprigg
(16), the facts there were so very different from those of the present case
that it cannot (1) (1609) 4 Coke, 1. (2) (1693) 2 Salk. 411. (3) (1774) 1 Cowp. 204. (4) (1829) 1 Knapp P. C. 329, n. (5) (1836) 1 Moo. P. C. 175; 43 R. R. 27. (6) (1851) 1 Sim. (N.S.) 301. (7) (1865) 2 H. & M. 559. (8) (1869) L. R. 8 Eq. 69. (9) (1887) 36 Ch. D. 489. (10) (1888) 38 Ch. D. 348. (11) (1872) L. R. 7 Ex. 365. (12) (1833) 7 Peters, 51, at p. 86. (13) (1835) 9 Peters, 711. (14) (1836) 10 Peters, 326. (15) (1838) 12 Peters, 410. (16) [1899] A. C. 572. [*397] be regarded as an authority. Moreover, in so far as Cook v. Sprigg (1) laid down the general propositions that conquest destroys all
private rights, and that the repudiation of liability by a Government is an act
of State which the Courts cannot inquire into, it is contrary to the
authorities and to the principles of international law: see Pollock on Torts,
7th ed. pp. 108, 109; Law Quarterly Review, vol. xvi. pp. 1, 2. The other cases relied on by the Crown are also not in point. They are
cases where attempts were being made to enforce rights which had been the
subject of treaties or agreements between two Sovereign Powers, or to recover
property which had been seized by the armed forces of the Crown. The present
case does not fall within either category. The suppliants are not seeking to
set aside or interfere with the annexation, but they contend that one of the
effects of the annexation has been to transfer from the Transvaal Government to
the Crown the liability to indemnify the suppliants for the loss of their gold,
and that the liability is one which can be enforced in this Court. [In addition to the cases mentioned above, they also referred to Walker
v. Baird (2) and Raleigh v. Goschen. (3)] Sir R. B. Finlay, A.-G., in reply. Text-writers on international law are
not authoritative. The passages from their writings which have been quoted do
not really support the first proposition put forward on behalf of the
suppliants; they are mere general expressions of opinion, and not subject to
the qualification, which the suppliants concede, that the proposition must be
limited to liabilities incurred before war and not for the purpose of war. This
concession is fatal to the authority of the passages relied on. The proposition
is further qualified by the admission that a conquering State may by the terms
of the annexation stipulate that certain liabilities will not be taken over,
but it is said that all liabilities not expressly excepted are taken over. It
cannot be seriously contended that the absence from Lord Roberts
proclamation of a schedule of excluded debts saddles the British Government
with liabiity (1) [1899] A. C. 572. (2) [1892] A. C. 491. (3) [1898] 1 Ch. 73. [*398] for all the debts of the Transvaal Government, and no authority has been
or can be produced to support this contention. Moreover, there are passages in
Hubers Staatensuccession, at pp. 65, 66, 114, 115, which shew that
his views on this point would have been very much qualified if his mind had
really been addressed to the question as it arises in this case. The
proposition of the suppliants further involves an unlimited liability on the
part of the conquering State a liability without benefit
of inventory. The passages cited from Hall, Halleck and Heffter do
not support this view, but on the contrary rather go to shew that in the
opinion of these writers the liability of the conquering State does not extend
beyond the amount of the assets taken over; but the text-books are not in
agreement on this point: see Westlakes International Law, Part. I. p.
76. The cases cited for the Crown establish beyond all doubt that international
law is not part of the common law of England, and that the claims of the
suppliants cannot be enforced by petition of right. Decisions as to ambassadors
and territorial waters are beside the question; they are ex necessitate cases,
for neither ambassadors privileges nor territorial waters could be
said to exist if they were not recognised and enforced in Courts of law. Cur. adv. vult. June 1. The judgment of the Court (Lord Alverstone C.J., Wills and
Kennedy JJ.) was read by LORD ALVERSTONE C.J. In this case the Attorney-General, on behalf of the
Crown, demurred to a petition of right presented in the month of June, 1904, by
the West Rand Central Gold Mining Company, Limited. The petition of right
alleged that two parcels of gold, amounting in all to the value of 3804l., had
been seized by officials of the South African Republic 1104l. on
October 2 in course of transit from Johannesburg to Cape Town, and 2700l. on
October 9, taken from the bank premises of the petitioners. No further
statement was made in the petition of the circumstances under which, or the
right by which, the Government of the Transvaal [*399] Republic claimed to seize the gold; but it was stated in paragraph 6,
That the gold was in each case taken possession of by, and on behalf
of, and for the purposes of, the then existing Government of the said Republic,
and that the said Government, by the laws of the said Republic, was under a
liability to return the said gold, or its value, to your suppliants. None of
the said gold has been returned to your suppliants, nor did the said Government
make any payment in respect thereof. The petition then alleged that a
state of war commenced at 5 P.M. on October 11, 1899, that the forces of the
late Queen conquered the Republic, and that by a Proclamation of September 1,
1900, the whole of the territories of the Republic were annexed to, and became
part of, Her Majestys dominions, and that the Government of the
Republic ceased to exist. The petition then averred that by reason of the
conquest and annexation Her Majesty succeeded to the sovereignty of the
Transvaal Republic, and became entitled to its property; and that the
obligation which vested in the Government was binding upon His present Majesty
the King. Before dealing with the questions of law which were argued before us, we
think it right to say that we must not be taken as acceding to the view that
the allegations in the petition disclosed a sufficient ground for relief. The
petition appears to us demurrable for the reason that it shews no obligation of
a contractual nature on the part of the Transvaal Government. For all that
appears in the petition the seizure might have been an act of lawless violence.
The allegations that A. seized property belonging to B., and that thereupon by
law an obligation arose on the part of A. to return to B. his property, or pay
its value, might be truly made in respect of any wrongful seizure of
A.s property. We do not assent to the proposition of Lord Robert
Cecil that it is sufficient to allege what may be a ground of action if
something else be added which is not stated. Upon all sound principles of
pleading it is necessary to allege what must, and not what may, be a cause of
action, and unless the obligation alleged in the present instance arose out of
contract it is clear that no petition of right could be maintained. A passage
in the judgment of Willes J. in the [*400] case of Gautret v. Egerton
(1) states this view so clearly that we think it well to quote it. Willes J.
says: The argument urged on behalf of the plaintiffs, when analyzed,
amounts to this, that we ought to construe the general words of the declaration
as describing whatever sort of negligence the plaintiffs can prove at the
trial. The authorities, however, and reason and good sense, are the other way.
The plaintiff must, in his declaration, give the defendant notice of what his
complaint is. He must recover secundum allegata et probata. What is it that a
declaration of this sort should state in order to fulfil those conditions? It
ought to state the facts upon which the supposed duty is founded, and the duty
to the plaintiff with the breach of which the defendant is charged. I
need scarcely add that in dealing with a petition of right, which must be based
upon contract, that observation would of course have its full force and effect.
The discussion, however, is academical, as the Attorney-General for the Crown,
as well as Lord Robert Cecil for the suppliants, desired that we should deal
with the case as if any necessary amendment had been made, and decide the
question whether all the contractual obligations of a State annexed by Great Britain
upon conquest are imposed as a matter of course, and in default of express
reservations, upon Great Britain, and can be enforced by British municipal law
against the Crown in the only way known to British municipal law, that is by a
petition of right. We have no hesitation in answering this question in the
negative, but, inasmuch as it is one of great importance, and we have had the
advantage of hearing very able argument upon both sides, we think it right to
give our reasons in some detail. Lord Robert Cecil argued that all contractual obligations incurred by a
conquered State, before war actually breaks out, pass upon annexation to the
conqueror, no matter what was their nature, character, origin, or history. He
could not indeed do otherwise, for it is clear that if any distinction is to be
made it must be made upon grounds which, without depriving the original
liability of its character of a legal obligation against the vanquished State,
make it inexpedient for (1) (1867) L. R. 2 C. P. 371. [*401] the conquering State to adopt that liability as against itself; in other
words, upon ethical grounds, into which enter considerations of propriety,
magnanimity, wisdom, public duty, in short, of policy, in the broadest and
widest sense of the word. It is equally clear that these are matters with which
municipal Courts have nothing to do. They exist for the purpose of determining
and enforcing legal obligations, not for the purpose of dividing them into
classes, and saying that some of them, although legally binding, ought not to
be enforced. The broad proposition which thus formed the basis of Lord Robert
Cecils argument almost answers itself, for there must have been, in
all times, contracts made by States before conquest such as no conqueror would
ever think of carrying out. Some illustrations will occur in the course of our
subsequent remarks. For the moment we will pursue Lord Roberts
argument into further detail. His main proposition was divided into three
heads. First, that, by international law, the Sovereign of a conquering State
is liable for the obligations of the conquered; secondly, that international
law forms part of the law of England; and, thirdly, that rights and
obligations, which were binding upon the conquered State, must be protected and
can be enforced by the municipal Courts of the conquering State. In support of his first proposition Lord Robert Cecil cited passages
from various writers on international law. In regard to this class of authority
it is important to remember certain necessary limitations to its value. There
is an essential difference, as to certainty and definiteness, between municipal
law and a system or body of rules in regard to international conduct, which, so
far as it exists at all (and its existence is assumed by the phrase
international law), rests upon a consensus of civilized
States, not expressed in any code or pact, nor possessing, in case of dispute,
any authorized or authoritative interpreter; and capable, indeed, of proof, in
the absence of some express international agreement, only by evidence of usage
to be obtained from the action of nations in similar cases in the course of
their history. It is obvious that, in respect of many questions that may arise,
there will be room for difference of opinion as to whether such a consensus
could [*402] be
shewn to exist. Perhaps it is in regard to the extra-territorial privileges of
ambassadors, and in regard to the system of limits as to territorial waters,
that it is least open to doubt or question. The views expressed by learned
writers on international law have done in the past, and will do in the future,
valuable service in helping to create the opinion by which the range of the
consensus of civilized nations is enlarged. But in many instances their
pronouncements must be regarded rather as the embodiments of their views as to
what ought to be, from an ethical standpoint, the conduct of nations inter se,
than the enunciation of a rule or practice so universally approved or assented
to as to be fairly termed, even in the qualified sense in which that word can
be understood in reference to the relations between independent political
communities, law. The reference which these writers not
infrequently make to stipulations in particular treaties as acceptable evidence
of international law is as little convincing as the attempt, not unknown to our
Courts, to establish a trade custom which is binding without being stated, by
adducing evidence of express stipulations to be found in a number of particular
contracts. Before, however, dealing with the specific passages in the writings of
jurists upon which the suppliants rely, we desire to consider the proposition,
that by international law the conquering country is bound to fulfil the
obligations of the conquered, upon principle; and upon principle we think it
cannot be sustained. When making peace the conquering Sovereign can make any
conditions he thinks fit respecting the financial obligations of the conquered
country, and it is entirely at his option to what extent he will adopt them. It
is a case in which the only law is that of military force. This, indeed, was
not disputed by counsel for the suppliants; but it was suggested that although
the Sovereign when making peace may limit the obligations to be taken over, if
he does not do so they are all taken over, and no subsequent limitation can be
put upon them. What possible reason can be assigned for such a distinction?
Much inquiry may be necessary before it can be ascertained under what circumstances
the liabilities were incurred, and what debts should in foro [*403] conscienti3Ú4 be assumed. There must also
be many contractual liabilities of the conquered State of the very existence of
which the superior Power can know nothing, and as to which persons having
claims upon the nation about to be vanquished would, if the doctrine contended
for were correct, have every temptation to concealment others,
again, which no man in his senses would think of taking over. A case was put in
argument which very well might occur. A country has issued obligations to such
an amount as wholly to destroy the national credit, and the war, which ends in
annexation of the country by another Power, may have been brought about by the
very state of insolvency to which the conquered country has been reduced by its
own misconduct. Can any valid reason be suggested why the country which has
made war and succeeded should take upon itself the liability to pay out of its
own resources the debts of the insolvent State, and what difference can it make
that in the instrument of annexation or cessation of hostilities matters of
this kind are not provided for? We can well understand that, if by public
proclamation or by convention the conquering country has promised something
that is inconsistent with the repudiation of particular liabilities, good faith
should prevent such repudiation. We can see no reason at all why silence should
be supposed to be equivalent to a promise of universal novation of existing
contracts with the Government of the conquered State. It was suggested that a
distinction might be drawn between obligations incurred for the purpose of
waging war with the conquering country and those incurred for general State
expenditure. What municipal tribunal could determine, according to the laws of
evidence to be observed by that tribunal, how particular sums had been
expended, whether borrowed before or during the war? It was this and cognate
difficulties which compelled Lord Robert Cecil ultimately to concede that he
must contend that the obligation was absolute to take over all debts and contractual
obligations incurred before war had been actually declared. Turning now to the text-writers, we may observe that the proposition we
have put forward that the conqueror may impose what terms he thinks fit in
respect of the obligations [*404] of the conquered territory, and that he alone must be the judge in such
a matter, is clearly recognised by Grotius: see War and
Peace, book iii. chap. 8, s. 4, and the Notes to Barbeyracs
edition of 1724, vol. ii. p. 632. For the assertion that a line is to be drawn
at the moment of annexation, and that the conquering Sovereign has no right at
any later stage to say what obligations he will or will not assume, we venture
to think that there is no authority whatever. A doctrine was at one time urged by
some of the older writers that to the extent of the assets taken over by the
conqueror he ought to satisfy the debts of the conquered State. It is, in our
opinion, a mere expression of the ethical views of the writers; but the
proposition now contended for is a vast extension even of that doctrine. It has
been urged that in numerous cases, both of peace and of cession of territories,
special provision has been made for the discharge of obligations by the country
accepting the cession or getting the upper hand in war; but, as we have already
pointed out, conditions the result of express mutual consent between two
nations afford no support to the argument that obligations not expressly
provided for are to follow the course, by no means uniform, taken by such
treaties. See as to this, s. 27 of the 4th edition of Halls
International Law, and the opinion of Lord Clarendon there cited. Lord Robert
Cecil cited a passage from Mr. Halls book, 4th ed. p. 105, in which
he states that the annexing Power is liable for the whole of the debts of the
State annexed. It cannot, however, be intended as an exhaustive or unqualified
statement of the practice of nations, whatever may have been the opinion of the
writer as to what should be done in such cases. It is not, in our opinion,
directed to the particular subject now under discussion. The earlier parts of
the same chapter contain passages inconsistent with any such view. We would
call attention particularly to s. 27 on pp. 98 and 99 of the 4th edition, where
the question as to the extent to which obligations do not pass is discussed,
and the passage on pp. 101 and 102, referring to the discussion between England
and the United States in 1854, in which Lord Clarendons contention
that Mexico did not inherit the obligations or rights of Spain [*405] is approved of by Mr. Hall. In the same
way the passage from Halleck, s. 25 of chap. 34 (Sir Sherston Bakers
edition of 1878), cited by Lord Robert Cecil, cannot be construed as meaning to
lay down any such general proposition. It is cited from a chapter in which
other sections contain passages inconsistent with the view that the legal
obligation to fulfil all contracts passed to the conquering State. The
particular section is in fact directed to the obligations of the conquering or
annexing State upon the rights of private property of the individual
the point which formed the subject of discussion in the American cases upon
which the suppliants relied and with which we shall deal later on. The passage
from Wheaton (Atlays ed. p. 46, s. 30) shews that the writer was only
expressing an opinion respecting the duty of a succeeding State with regard to
public debts, and, as the note to the passage shews, it is really based upon
the fact that many treaties have dealt with such obligations in different ways.
We have already pointed out how little value particular stipulations in
treaties possess as evidence of that which may be called international common
law. We have not had the opportunity of referring to the edition of Calvo,
cited by Lord Robert Cecil, but the sections of the 8th book of the edition
published in 1872 contain a discussion as to the circumstances under which
certain obligations should be undertaken by the conquering State. The distinction
between the obligations of the successor with regard to the private property of
individuals on the one hand, and the debts of the conquered State on the other,
is clearly pointed out, and paragraphs 1005 and 1010 are quite inconsistent
with any recognition by the author of the proposition contended for by the
suppliants. The same observations apply to Heffter, another work upon which
reliance was placed. As regards Max Hubers work on State Succession,
published in 1898, there is no doubt, as appears from Mr. Westlakes
recent book on international law, published last year, and from other
criticisms, that Huber does attempt to press the duty of a succeeding or
conquering State to recognise the obligations of its predecessor to a greater
extent than previous writers on international law, but the extracts cited by
the Attorney-General [*406] in his reply and other passages in Hubers book shew that even
his opinion falls far short of the proposition for which the suppliants
contend. But whatever may be the view taken of the opinions of these writers,
they are, in our judgment, inconsistent with the law as recognised for many
years in the English Courts; and it is sufficient for us to cite the language
of Lord Mansfield in Campbell v. Hall
(1) in a passage the authority of which has, so far as we know, never been
called in question: It is left by the Constitution to the
Kings authority to grant or refuse a capitulation. ... If he receives
the inhabitants under his protection and grants them their property he has a
power to fix such terms and conditions as he thinks proper. He is entrusted
with making the treaty of peace; he may yield up the conquest or retain it upon
what terms he pleases. These powers no man ever disputed, neither has it
hitherto been controverted that the King might change part or the whole of the
law or political form of government of a conquered dominion. And so,
much earlier, in the year 1722 (2nd Peere Williams, p. 75), it is said by the
Master of the Rolls to have been determined by the Lords of the Privy Council
that where the King of England conquers a country it is a different
consideration, for there the conqueror by saving the lives of the people
conquered gains a right and property in such people, in consequence of which he
may impose upon them what laws he pleases. References were made to
many cases of cession of territory not produced by conquest, and the frequent
assumption in such cases of the liabilities of the territory ceded by the State
accepting the cession was referred to. They may be dismissed in a sentence. The
considerations which applied to peaceable cession raise such different
questions from those which apply to conquest that it would answer no useful
purpose to discuss them in detail. The second proposition urged by Lord Robert Cecil, that international
law forms part of the law of England, requires a word of explanation and
comment. It is quite true that whatever has received the common consent of
civilized nations must have received the assent of our country, and that to (1) 1 Cowp. 204, at p. 209. [*407] which we have assented along with other nations in general may properly
be called international law, and as such will be acknowledged and applied by
our municipal tribunals when legitimate occasion arises for those tribunals to
decide questions to which doctrines of international law may be relevant. But
any doctrine so invoked must be one really accepted as binding between nations,
and the international law sought to be applied must, like anything else, be
proved by satisfactory evidence, which must shew either that the particular
proposition put forward has been recognised and acted upon by our own country,
or that it is of such a nature, and has been so widely and generally accepted,
that it can hardly be supposed that any civilized State would repudiate it. The
mere opinions of jurists, however eminent or learned, that it ought to be so
recognised, are not in themselves sufficient. They must have received the
express sanction of international agreement, or gradually have grown to be part
of international law by their frequent practical recognition in dealings
between various nations. We adopt the language used by Lord Russell of Killowen
in his address at Saratoga in 1896 on the subject of international law and
arbitration: What, then, is international law? I know no better
definition of it than that it is the sum of the rules or usages which civilized
States have agreed shall be binding upon them in their dealings with one
another. In our judgment, the second proposition for which Lord
Robert Cecil contended in his argument before us ought to be treated as correct
only if the term international law is understood in the
sense, and subject to the limitations of application, which we have explained.
The authorities which he cited in support of the proposition are entirely in
accord with and, indeed, well illustrate our judgment upon this branch of the
arguments advanced on behalf of the suppliants; for instance, Barbuits
Case (1), Triquet v. Bath (2), and Heathfield v. Chilton
(3) are cases in which the Courts of law have recognised and have given effect
to the privilege of ambassadors as established by international law. But the
expressions used by Lord Mansfield when (1) Cas. t. Tal. 281. (2) 3 Burr. 1478. (3) 4 Burr. 2016. [*408] dealing with the particular and recognised rule of international law on
this subject, that the law of nations forms part of the law of England, ought
not to be construed so as to include as part of the law of England opinions of
text-writers upon a question as to which there is no evidence that Great
Britain has ever assented, and a fortiori if they are contrary to the
principles of her laws as declared by her Courts. The cases of Wolff v.
Oxholm (1) and Rex v. Keyn (2) are only illustrations of the same rule namely, that
questions of international law may arise, and may have to be considered in
connection with the administration of municipal law. We pass now to consider the third proposition upon which the success of
the suppliants in this case must depend namely, that the claims of
the suppliants based upon the alleged principle that the conquering State is
bound by the obligations of the conquered can be enforced by petition of right.
It is the consideration of this part of the case which brings out in the
strongest relief the difficulties which exist in the way of the suppliants. It
is not denied on the suppliants behalf that the conquering State can
make whatever bargain it pleases with the vanquished; and a further concession
was made that there may be classes of obligations that it could not be
reasonably contended that the conquering State would by annexation take upon
itself, as, for instance, obligations to repay money used for the purposes of
the war. We asked more than once during the course of the argument by what
rule, either of law or equity, which could be applied in municipal Courts could
those Courts decide as to the obligations which ought or ought not to be
discharged by the conquering State. To refer again to the instance given in the
commencement of this judgment the obligation incurred by the
conquered State by which their credit has been ruined may have been contracted
for insufficient consideration or under circumstances which would make it
perfectly right from every point of view for the conquering State to repudiate
it in whole or in part. No answer was, or could be, given. Upon this part of
the case there is a series of authorities from the year 1793 down (1) 6 M. & S. 92; 18 R. R. 313. (2) 2 Ex. D. 63. [*409] to the present time holding that matters which fall properly to be
determined by the Crown by treaty or as an act of State are not subject to the
jurisdiction of the municipal Courts, and that rights supposed to be acquired
thereunder cannot be enforced by such Courts. It is quite unnecessary to refer
in detail to them all. They extend from Nabob of the Carnatic v. East India
Co. (1) down to Cook v. Sprigg. (2) As a great deal of argument was addressed to us upon the latter
case, we think it right to say that, although it was contended that the actual
decision was not in harmony with the views of the American Courts upon
analogous matters, no authority was cited, or, as far as we know, exists, which
throws any doubt upon that part of the judgment which is in the following
words: The taking possession by Her Majesty, whether by cession or by
any other means by which sovereignty can be acquired, was an act of State and
treating Sigcau as an independent Sovereign, which the appellants are compelled
to do in deriving title from him. It is a well-established principle of law
that the transactions of independent States between each other are governed by
other laws than those which municipal Courts administer. It is no answer to say
that by the ordinary principles of international law private property is
respected by the Sovereign which accepts the cession and assumes the duties and
legal obligations of the former Sovereign with respect to such private property
within the ceded territory. All that can be properly meant by such a
proposition is that, according to the well-understood rules of international
law, a change of Sovereignty by cession ought not to affect private property,
but no municipal tribunal has authority to enforce such an
obligation. We do not repeat the citations of Secretary of State
for India v. Kamachee (3) and Doss v.
Secretary of State for India (4), referred to in
the judgment in Cook v. Sprigg. (2) They form
part of the chain of authorities to which we have referred, and we observe in
passing that we are not to be considered as throwing any doubt upon the
correctness of the decision itself in Cook v. Sprigg. (2) The case of Rustomjee v. (1) 1 Ves. Jr. 371; 2 Ves. Jr. 56. (2) [1899] A. C. 572. (3) 13 Moo. P. C. 22. (4) L. R. 19 Eq. 509. [*410] Reg. (1), affirmed in the Court of
Appeal, deserves, however, one word of comment. There the British Government
had received from the Chinese Government a sum of money in respect of certain
claims made upon that Government by persons, of whom the petitioner was one. A
petition of right was brought in order to enforce payment by our Government of
those claims out of the sum so received by the British Government. From some
points of view that case may be considered much stronger in favour of the
suppliant than the present, the money having been received by the Crown under a
treaty specifically on account of the debts due to British subjects. In delivering
the judgment of the Court of Appeal, Lord Coleridge used language which has a
strong bearing on the present case. He said (2): The Queen might or
not, as she thought fit, have made peace at all; she might or not, as she
thought fit, have insisted on this money being paid her. She acted throughout
the making of the treaty and in relation to each and every of its stipulations
in her sovereign character, and by her own inherent authority; and, as in
making the treaty, so in performing the treaty, she is beyond the control of
municipal law, and her acts are not to be examined in her own Courts.
It was contended by Lord Robert Cecil that the view we are taking was
inconsistent with certain American decisions and with certain decisions of our
own Court of Chancery, to which we think it right to refer. A careful
examination of these cases satisfies us that rightly understood no such
inconsistency exists. The American cases were a series of decisions of the
Supreme Court of the United States respecting the rights of the owners to
landed property in territories formerly forming part of independent countries
which had been ceded to or annexed by the United States. The particular cases
cited were United States v. Percheman
(3), Mitchell v. United States (4), Smith
v. United States (5), and Strother v. Lucas. (6) These cases arose respecting the rights of landed property in
Florida, Louisiana, and Missouri. They (1) 1 Q. B. D. 487; 2 Q. B. D. 69. (2) 2 Q. B. D. at p. 73. (3) 7 Peters, 51. (4) 9 Peters, 711. (5) 10 Peters, 326. (6) 12 Peters, 410. [*411] were all cases of cession, and in all of them the treaties of cession
and subsequent legislation of the United States protected the rights of owners
of private property as they existed at the time of cession, and the sole
question was whether, under the circumstances of each individual case, private
rights of property existed and could be enforced as against the United States.
No question of duty of the country, to whom the territory passed, of fulfilling
the obligations of the original country in any other respect arose; and the
language of Marshall C.J. (1) and of Baldwin J.(2), all of which is to the same
effect, must be construed solely with reference to the rights of private
property in individuals, such property being locally situated in a country
annexed by another country. We asked Lord Robert Cecil and Mr. Hamilton whether
they had been able to find any case in which a similar principle had been
applied to personal contracts or obligations of a contractual character entered
into between a ceding or conquered State and private individuals. They informed
us that they had not been able to do so, nor do we know of any such case. It
must not be forgotten that the obligations of conquering States with regard to
private property of private individuals, particularly land as to which the
title had already been perfected before the conquest or annexation, are
altogether different from the obligations which arise in respect of personal
rights by contract. As is said in more cases than one, cession of territory
does not mean the confiscation of the property of individuals in that
territory. If a particular piece of property has been conveyed to a private
owner or has been pledged, or a lien has been created upon it, considerations
arise which are different from those which have to be considered when the
question is whether the contractual obligation of the conquered State towards
individuals is to be undertaken by the conquering State. The English cases on
which reliance was placed were United States v. Prioleau (3), in which a claim was made by the United States Government to
cotton which had been the property of the Confederated States; United (1) 7 Peters, at p. 86. (2) 9 Peters, at p. 733; 10 Peters, at p. 329. (3) 2 H. & M. 559. [*412] States v. Macrae (1), which recognised
the right of the Government suppressing rebellion to all moneys, goods, and
treasures which were public property at the time of the outbreak: Republic
of Peru v. Peruvian Guano Co. (2) and Republic
of Peru v. Dreyfus. (3) The only
principle, however, which can be deduced from these cases is that a Government
claiming rights of property and rights under a contract cannot enforce those
rights in our Courts without fulfilling the terms of the contract as a whole.
They have, in our judgment, no bearing upon the propositions which we have been
discussing. We are aware that we have not commented upon all the cases which
were cited before us we have not failed to consider them; and any arguments
which could be founded upon them seem to us to be covered by the observations
already made. We are of opinion, for the reasons given, that no right on the
part of the suppliants is disclosed by the petition which can be enforced as
against His Majesty in this or in any municipal Court; and we therefore allow
the demurrer, with costs. Judgment for the Crown. (1) L. R. 8 Eq. 69. (2) 36 Ch. D. 489. (3) 38 Ch. D. 348. |