doctype: dom

caseName: Rights of Nationals of the United States of America in Morocco (France v. United States of America)

decisionType: judgment

procedure: (including the text of the declaration of Judge Hsu Mo)

title: Judgment of 27 August 1952

text: INTERNATIONAL COURT O F JUSTICE

text: August 27th General List : YEAR 1952 No. I I

text: CASE CONCERNING RIGHTS OF NATIONALS OF THE UNITED STATES OF AMERICA IN MOROCCO

text: (FRANCE v. UNITED STATES O F AMERICA)

text: Economic liberty u ' i t l ~ o u t a n y inequality i n ilforocco in the Getzeral Act of A1gcciras.-Eoect of establishment of Protectorate thereon.-Egect of discrimination o n validity of Hesidential Decree of December 30th. 1948, regulating imports. C o n s z ~ l a r jurisdiction in French Z o n e of Alorocco a s based On bilateral treaties, most-favoured-nation claztses a d multilateral treaties.-Aifeaning of "dispute" i n T r e a t y of 1836 between illorocco and the United States ; whetl~er applicable to criminal and cioil nzatters.-Eflect of renunciation by oiher States of ccnsular jurisdiction.-Eflect of Convention of M a d r i d and Act of Algeciras o n consular jurisdiction.- C z ~ s t o m and usage. " R i g h t of assent" to hloïoccan l ~ ~ i s l a t i o n a s corollary of consular jurisdictio~z.-dsscnt necessary for application of Moroccan laws in consular courts.-Local laws contrary to treaty rights.

text: Fiscal immuîzity a s based o n Convention of Aladrid and Act of Algeciras and most-favoured-natio~z clauscs. Interpvetation of Article 95 of Act of Algccirus.

text: JUDGMEN'T

text: L'rescrit : President Sir Arnold MCNAIR ; Jzddges BASDEVANT, HACKWORTH, ZORICIC, KLAESTAD, BADAWI, READ, H s u Mo, LEVI CARNEIRO, Sir Benegal RAU, ARMAND- C ~ o s ; I<egistrar H x ~ i i < i ~ .

text: I n the case concerning the rights of nationals of the United States of America in Morocco,

text: between

text: the French Republic, represented by : M. André Gros, Professor of the Faculties of Law, Legal Adviser to the Ministry for Foreign Affairs, as Agent, assisted by : M. Paul Reuter, Professor of the Faculty of Law of Aix-en- Provence, Assistant Legal Adviser to the Ministry for Foreign Affairs, as Assistant Agent, and by : M. Henry Marchat, Minister Plenipotentiary, as Counsel, and by : M. de Lavergne, inspecteztr des finances, M . Fougère, nzaitre des requêtes a u Conseil d'État, M. de Laubadère, Professor of the Faculties of Law, as Expert Advisers ;

text: and

text: the United States of America, represented by : Mr. Adrian S. Fisher, the 1,egal Adviser, Department of State, as Agent, assisted by : Mr. Joseph M. Sweeney, Assistant to the Legal Adviser, Department of State, Mr. Seymour J. Rubin, member of the Bar of the District of Columbia, as Counsel, and by : Mr. John A. Bovey Jr., Consul, United States Consulate-General, Casablanca,

text: Mr. Edwin L. Smith, Legal Adviser, United States Legation, Tangier, Mr. John E. Utter, First Secretary, United States Embassy, Paris, as Expert Advisers,

text: composed as above,

text: delizlers fhe /oZlowing Jzidgrnent :

text: On October 28th, 1950, the Chargé d'affaires a.i. of France to the Netherlands filed in the Registry, on behalf of the Government of the French Republic, a n Application instituting proceedings before the Court against the United States of America, concerning the rights of nationals of the United States of America in Morocco. The Application referred to the Declarations by which the Government of the United States of America and the French Government accepted the compulsory jurisdiction of the Court in accordance with Article 36, paragraph 2, of the Court's Statute. I t also referred t o the Economic Co-operation Agreement of June 28th, 1948, between the United States and France, and to the Treaty for the Organization of the French Protectorate in the Shereefian Empire, signed a t Fez on March 3oth, 1912, between France and the Shereefian Empire. I t mentioned the Treaty of Peace and Friendship of September 16th, 1836, between the United States and the Shereefian Empire, a s well a s the General Act of the International Conference of Algeciras of April7th, 1906. Pursuant t o Article 40, paragraphs 2 and 3, of the Statute, the Application was communicated to the Government of the United States as well as t o the States entitled t o appear before the Court. I t was also transmitted to the Secretary-General of the United Nations. The time-Iimits for the deposit of the Pleadings were fixed by Order of November zznd, 1950. The Memorial of the French Government, which was filed on the appointed date, quoted several provisions of the General Act of Algeciras and drew conclusions therefrom a s to the rights of the United States. The construction of a convention t o which States other than those concerned in the case were parties being thus in question, such States were notified in accordance with Article 63, paragraph 1, of the Statute : for this purpose notes were addressed on April 6th, 1951, to the Governments of Belgium, Spain, Italy, the Netherlands, Portugal, the United Kingdom of Great Britain and Northern Ireland and Sweden.

text: On June Z I S t , 1951, within the time-limit fixed for the deposit of its Counier-lllemorial, the Government of the United States of

text: 179 J U D G M E N T O F 27 VI11 52 (u.s. NATIONALS I N MOROCCO)

text: America filed a document entitled "Preliminary Objection". The proceedings on the merits were thereby suspended. The Preliminary Objection was communicated to the States entitled to appear before the Court as well as t o the States which had been notified of the deposit of the Application pursuant to Article 63 of the Statute. The proceedings thus instituted by the Preliminary Objection were terininated following a declaration by the Government of the United States t h a t i t was prepared t o withdraw its objection, having regard t o the explanations and clarifications given on behalf of the French Government, and following a declaration by the French Government t h a t i t did not oppose the withdrawal. An Order of October 31st, 1951, placed on record the discontinuance, recorded t h a t the proceedings on the merits were resumed, and fixed new time-limits for the filing of the Counter-Memorial, Reply and Rejoinder. The Counter-Memorial and Reply were filed within the timelimits thus fixed. As regard the Rejoinder, the time-limit was extended a t the request of the Government of the United States from April 11th to April 18th, 1952, b y Order of March y s t , 1952. On April18th, 1952, the Rejoinder was filed and the case was ready for hearing. Public hearings were held on July 15th, 16th, 17th, z ~ s t , 22nd, 23rd, 24th and 26th, 1952, during which the Court heard : MM. André Gros and Paul Reuter on behalf of the French Government ; and Mr. Adrian S. Fisher and Mr. Joseph M. Sweeney on behalf of the Government of the United States. A t the conclusion of the argument before the Court, the Subn~issions of the Parties were presented a s follows :

text: On behalf of the French Government : "May it please the Court, To adjudge and declare That the privileges of the nationals of the United States of America in Morocco are only those which result from the text of Articles 20 and 21 of the Treaty of September 16th, 1836, and that since the most-favoured-nation clause contained in Article 24 of the said treaty can no longer be invoked by the United States in the present state of the international obligations of the Shereefian Empire, there is nothing to justify the granting to the nationals of the United States of preferential treatment which would be contrary to the provisions of the treaties ; That the Government of the United States of America is not entitled to claim that the application of al1 laws and regulations to its nationals in Morocco requires its express consent ;

text: That the nationals of the United States of America in Morocco are subject to the laws and regulations in force in the Shereefian Empire and in particuIar the regulation of December 3oth, 1948, on imports not involving an allocation of currency, without the prior consent of the United States Government ;

text: 180 JUDGMENT OF 27 VIII 52 (U.Ç. NATIONALS IN MOROCCO)

text: That the decree of December 3oth, 1948, concerning the regulation of imports not involving an allocation of currency, is in conformity with the economic system which is applicable to Morocco, according to the conventions which bind France and the United States ; That Article 95 of the Act of Algeciras defines value for customs piirposes as the value of the merchandise a t the time and a t the place where it is presented for customs clearance ; That no treaty has conferred on the United States fiscal immunity for its nationals in Morocco, either directly or through the effect of the most-favoured-nation clause ; That the laws and regulations on fiscal matters which have been put into force in the Shereefian Empire are applicable to the nationals of the United States without the prior consent of the Government of the United States ; That, consequently, consumption taxes provided by the Dahir of February 28th, 1948, have been legally collected from the nationals of the United States, and should not be refunded t o them."

text: On behalf of t h e Government of t h e United S t a t e s :

text: The Submissions and Conclusions presented 1)y the French Government in this case should be rejected on the ground that the French Government has failed to maintain the burden of proof which it assumed as party plaintiff and by reason of the nature of the legal issues involved.

text: The treaty rights of the United States in Morocco forbid Morocco to impose prohibitions on American imports, Save those specificd by the treaties, and these rights are still in full force and effect. The Dahir of December 30, 1948, imposing a prohibition on imports is in direct contravention of the treaty rights of the United States forbidding prohibitions on American imports and the French Government by applying the Dahir of December 30, 1948, to American nationals, without the consent of the United States, from December 31, 1948, to May I I , 1949, violated the treaty rights of the United States and was guilty of a breach of international law.

text: American nationals can not legally be submitted to the Dahir of December 30, 1948, without the prior consent of the United States which operates to waive temporarily its treaty rights.

text: The jurisdiction conferred upon the United States by the Treaties of 1787 and 1836 was jurisdiction, civil and criminal, in al1 cases arising between American citizens. In addition, the United States acquired in Morocco jurisdiction in al1 cases in which an American citizen or protégé was defendant through the effect of the most-favoiired-nation clause and through custom and usage. Such jurisdiction was not affected by the surrender by Great Britain in 1937 of its rights of jurisdiction in the French Zone of Morocco.

text: Such jurisdiction has never been renounced, expressly or impliedly, by the United States.

text: Under the regime of extraterritorial jurisdiction now exerciscd by the United States in Morocco, United States citizens are not siibject, in principle, to the application of Moroccan laws.

text: Such laws become applicable to the United States citizens only if they are submitted to the prior assent of the United States Government and if this Government agrees to make theni applicable to its citizens. The Dahir of December 30, 1948, not having been submitted to the prior assent of the United States Government, cannot be made applicable to United States citizens.

text: As a counter-claim : I. Under Article 95 of the Act of Algeciras, the value of imports from the United States must be determined for the purpose of customs assessments by adding to the purchase value of the imported merchandise in the United States the expenses incidental to its transportation to the custom-house in Morocco, exclusive of al1 expenses following its delivery to the custom-house, such as customs duties and storage fees. I t is a violation of the Act of Algeciras and a breach of international law for the customs authorities to depart from the method of valuation so defined and to determine the value of imported merchandise for customs purposes by relying on the value of the imported merchandise on the local Moroccan market. 2. The treaties exempt American nationals from taxes, except as specifically provided by the same treaties ; to collect taxes £rom American nationals in violation of the terms of the treaties is a breach of international law. Such taxes can legally be collected from American nationals only with the previous consent of the United States which operates to waive temporarily its treaty right, and from the date upon which such consent is given, unless otherwise specified by the terms of the conscnt. Consumption taxes provided by the Dahir of February 28, 1948, which were collected from American nationals up to August 15, 19.50, the date on which the United States consented to these taxes, were illegally collected and should be refunded to them. 3. Since Moroccan laws do not become applicable to American citizens until they have received the prior assent of the United States Government, the lack of assent of the United States Government to the Dahir of February 28, 1948, rendered illegal the collection of the consumptioil taxes provided by that Dahir."

text: T h e Court will first deal with t h e dispute relating t o t h e Decree issued b y t h e Resident General of t h e French Republic in Morocco, dated December 3oth, 1948, concerning t h e regulation of imports into t h e French Zone of Morocco. The following Submissions are presented :

text: O n behalf of t h e Government of France :

text: "That the Decree of December 3oth, 1948, coilcerning the regulation of imports not involving an allocation of currency, is in conformity with the economic system which is applicable to I\Iorocco, according to the conventions which bind France and the United States."

text: O n behalf of the Government of the United States of America:

text: "The treaty rights of the United States in Morocco forbid Morocco to impose prohibitions on American imports, save those specified by the treaties, and these rights are still in full force and effect.

text: The Dahir of Decembcr 30, 1945, imposing a prohibition or1 imports is in direct contravention of the treaty rights of the United

text: T h e French Government contends that the Ilecree of 1)eceinber 3oth, 1948, is in conformity with t h e treaty provisions which are applicable t o Morocco a n d binding on France a n d t h e United States. This contention is disputed by t h e United States Government for various reasons. The Court will first consider the clairil t h a t the Decree involves a discriinination in favour of France which contravenes the treaty rights of the United States. By a Dahir of September gtl-i, 1939, His Shereefiaii Majesty dccided 3s follows :

text: "Article I.-It is prohibited to import into the French Zone of the Sliereefian Empire, whatever may be the customs regulations in force, goods other than gold in any form. Article a.-The Director General of Communications may, however, waive this prohibition on entry as regards combustible solid mineral matter and petroleum products, antl the Director of Economic Affairs may do likewise as regards any other products.

text: Article 3.-It is left to the decision of the Resident General to determine the measures whereby the provisions herein contained shall bc put into effect."

text: A Residential Decree of t h e saine d a t e laid down t h e terms of application of t h e Dahir, including provisions relating t o requests for a waiver of t h e prohibition of imports. Article 4 provided :

text: "Goods of French or Algerian origin sliipped froni France or

text: Algeria, shall for the time being be admitted u-ithout any spccial

text: formalities."

text: F u r t h e r regulations were prescribed b y a Residential 1)ccrec of September ~ o t h , 1939, subjecting imports without official allocation I O of currency to special authorization. Article 7 provided in its first paragraph : "Commercial arrangements with France, Algeria, French Colonies, African territories under French Mandate, and Tunisia, are not subject to the provisions herein contained."

text: B y a Residential Decree of March t th, 1948, a new Article 5 was added t o the Decree of September gth, 1939 : "Article 5.-Save for such exceptions as may be specified by the appropriate heads of departments, the prohibition on entry shall hereafter be generally waived as regards goods imported from any origin or source, when import does not entail any financial settlement between the French zone of the Shereefian Empire, France, or any territory of the French Union on the one part and foreign territory on the other part." Finally, this new Article 5 was revoked by the Decree of Deceniber 3oth, 1948, which is the subject-matter of the present dispute. After having referred t o the Dahir of September gth, 1939, and to the Decrees of t h a t date a n d of March t th, 1948, the Resideiit General of the French Republic decreed : "Article I.-The provisions of Article 5 of the aforesaid Residential Decree of September gtli, 1939, will cease to apply as from January rst, 1949, Save for the exception set out in Article 2 hereof.

text: Article 2.-Goods which are proved to have been shipped directly to the French Zone of the Shereefian Empire before January 15th, 1949, shall still fall within the provisions of Article 5 of the aforesaid Residential Decree of September gth, 1939.

text: The effect of this Decree was t o restore the import regulations introduced in September 1939. Imports without official allocation of currency were again subjected t o a system of licensing control. B u t these import regulations did not apply t o France or other parts of the French Union. From France and other parts of the French Union imports into the French zone of Morocco were free. The Decree of December 3oth, 1948, involved consequently a discrimination in favour of France, and the Government of the United States contends t h a t t his discrimination contravenes its treaty rights.

text: I t is common ground between the Parties that the characteristic of the status of Morocco, as resulting from the Geileral Act of Algeciras of April7th, 1906, is respect for the three principles stated in the Preamble of the Act, namely : "the soverejgnty and independence of His Majesty the Sultan, the integrity of his domains, and economic liberty without a n y inequality". The last-mentioned principle of economic liberty without a n y inequality must, in its application to Morocco, be considered against the background of the treaty provisions relating to trade and equality of treatment in economic matters existing a t that time. By the Treaty of Commerce with Great Britain of December gth, 1856, as well as by Treaties with Spain of November zoth, 1861, and with Germany of June ~ s t , 1890, the Sultan of Morocco guaranteed certain rights in matters of trade, including imports into Morocco. These States, together with a number of other States, including the United States, were guaranteed equality of treatment by virtue of most-favoured-nation clauses in their treaties with Morocco. On the eve of the Algeciras Conference the three principles mentioned above, including the principle of "economic liberty without any inequality", were expressly accepted by France and Germany in an exchange of letters of July 8th, 1905, concerning their attitude with regard to Morocco. This principle, in its application to Morocco, was thus already well established, when it was reaffirmed by that Conference and inserted in the Preamble of the Act of 1906. Considered in the light of these circumstances, it seems clear that the principle was intended to be of a binding character and not merely an empty phrase. This was confirmed by Article 105, where the principle was expressly applied in relation to the public services in Morocco. I t was also confirmed by declarations made a t the Conference by the representative of Spain, who referred to "equa- Iity of treatment in commercial matters", as well as by the representative of France. The establishment of the French Protectorate over Morocco by the Treaty of March 3oth, 1912, between France and Morocco, did not involve any modification in this respect. In the Convention between France and Germany of November 4th, 1911, concerning the establishment of this Protectorate, the Government of Germany made in Article I the reservation that "the action of France should secure in Morocco economic equality between the nations". On the other hand, the Government of France declared in Article 4 that it would use its good offices with the Moroccan Government "in order to prevent any diff erential treatment of the subj ects of the various Powers." The other States on behalf of which the Act of Algeciras was signed, with the exception of the United States, adhered later to the Franco-German Convention of 1911, thereby again accepting the principle of equality of treatment in economic matters in Morocco. France endeavoured to obtain also the adherence of the United States, and in a Note of November 3rd, 1911, from the French Ambassador in Washington to the United States Secretary of State, reference was made to the Franco-German Convention. I t was declared that France would use her good offices with the Moroccan Government in order to prevent any differential treatment of the subjects of the Powers. In another Note from the French Ambassador to the Sccretary of State, dated November 14th, 1918, it was declared that the benefit of commercial equality in Morocco results, not only f r o n the most-favoured-nation clause, but also from the clause of economic equality which is inserted in the Act of Algeciras and reproduced in the Franco-German Convention of 191 I. These various facts show that coinmercial or economic equality in Morocco was assured to the United States, not only by Morocco, but also by France as the protecting State. I t inay be asked whether France, in spite of her position as the protector of Morocco, is herself subject to this principle of equality and can not enjoy commercial or economic privileges which are not equally enjoyed by the United States. I t is not disputed by the French Government that Morocco, even under the Protectorate, has retained its personality as a State in international law. The rights of France in Morocco are defined by the Protectorate Treaty of 1912. I n economic matters France is accorded no privileged position in R4orocco. Such a privileged position would not be compatible with the principle of economic liberty without any inequality, on which the Act of Algeciras is based. This was confirmed by the above-mentioned Note from the French Ambassador in Washington of November 14th, 1918, where it is stated that, by virtue of the clause of economic equality inserted in the Act of Algeciras, other States have preserved their right to enjoy such equality, "même vis-à-vis de la Puissance protectrice", and that the United States can, therefore, not only recognize French courts in Morocco, but also give up, in the French Zone, the enjoyment of al1 privileges following from capitulations, without thereby losing this advantage. I t follows from the above-mentioned considerations that the provisions of the Decree of December 3oth, 1948, contravene the rights which the United States has acquired under the Act of Algeciras, because they discriminate between imports from France and other parts of the French Union, on the one hand, and imports from the United States on the other. France was exempted from control of imports without allocation of currency, while the United States was subjected to such control. This differential treatment was not compatible with the Act of Algeciras, by virtue of which the United States can claim t o be treated as favourably as France, as far as economic matters in Morocco are concerned.

text: This conclusion can also be derived from the Treaty between the United States and Morocco of September r6th, 1836, Article 24, where it is "declared that whatever indulgence, in trade or otherwise, shall be grantkd to any of the Christian Powers, the citizens of the United States shall be equally entitled to them". Having regard to the conclusion already arrived a t on the basis of the Act of Algeciras, the Court will limit itself t o stating as its opinion that the United States, by virtue of this most-favoured-nation clause,

text: 186 J U D G M E N T O F 27 VI11 52 (u.s. NATIONALS I N MOROCCO)

text: has the right t o object t o any discrimination in favour of France, in the matter of imports into the French Zone of Morocco. The Government of France has submitted various contentions purporting t o demonstrate the legality of exchange control. The Court does not consider it necessary to pronounce upon these contentions. Even assuming the legality of exchange control, the fact nevertheless remains that the measures applied b y virtue of the Decree of December 3oth, 1948, have involved a discrimination in favour of imports from France and other parts of the French Union. This discrimination can not be justified b y considerations relating t o exchange control. For these reasons the Court has arrived a t the conclusion t h a t the French Submission relating t o the Decree of December 3oth, 1948, must be rejected. I t therefore becomes unnecessary t o consider whether this Submission might be rejected also for other reasons invoked b y the Government of the United States. I n these circumstances, the Court is not called upon t o consider and decide the general question of the extent of the control over importation t h a t may be exercised b y the Moroccan authorities.

text: The Court will now consider the extent of the consular jurisdiction of the United States of America in the French Zone of Morocco. The French Submission in this regard reads as follows :

text: "That the privileges of the nationals of the United States of America in Morocco are only those which result from the text of Articles 20 and 21 of the Treaty of September 16th, 1836, and that since the most-favoured-nation clause contained in Article 24 of the said Treaty can no longer be invoked by the United States in the present state of the international obligations of the Shereefian Empire, there is nothing to justify the granting to the nationals of the United States of preferential treatment which would be contrary to the provisions of the treaties." The United States Submission concerning consular jurisdiction reads as follows : "3. The jurisdiction conferred upon the United States by the Treaties of 1787 and 1836 was jurisdiction, civil and criminal, in al1 cases arising between American citizens. In addition, the United States acquired in Morocco jurisdiction in al1 cases in which an American citizen or protégé was defendant through the effect of the most-favoured-nation clause and through custom and usage. Such jurisdiction was not affected by the surrender by Great

text: Britain in 1937 of its rights of jurisdiction in the French Zone of

text: Morocco. Siich jiirisdiction has never lxcn renounced, expressly or impliedly,

text: 114' tlic Lïriitt~tl Statc's."

text: It is common ground between the Parties that the present (Iisputc is limited to the French Zone of Morocco. It is an this groiind that it has been argued. The Court cannot, therefore, pronounce upon the legal situation in other parts of Morocco. In order to consider the extent of the rights of the United States relating to consular jurisdiction, it has been necessary t o examine three groiips of treaties. The first group includes the bilateral treaties of Morocco with France, the Netherlands, Great Britain, Denmark, Spain, the United States, Sardinia, Austria, Belgium and Germany, which cover the period from 1631 t o 1892.

text: These treaties, which were largely concerned with commerce, including the rights and privileges of foreign traders in Morocco, dealt with the question of consular jurisdiction in three different ways : (1) Certain of the treaties included specific and comprehensive grants of rights of consular jurisdiction to the Powers concerned, e.g., the Treaties with Great Britain of 1856 and with Spain of 1799 and 1861. (2) Certain of the treaties made strictly limited grants of privileges with regard to consular jurisdiction, e.g., the Treaties with the United States of 1787 and 1836.

text: (3) There were other treaties, which did not define in specific

text: terms the treaty rights granted by Morocco, but, instead, granted t o the foreign nations through the device of mostfavoured-nation clauses, the advantages and privileges already granted, or to be granted, to other nations.

text: There is a common element to be found in the most-favourednation clauses which have brought about and maintained a situation in which there could be no discrimination as between any of the Powers in Morocco, regardless of specific grants of treaty rights. When the most extensive privileges as regards consular jurisdiction were granted by Morocco to Great Britain in 1856 and to Spain in 1861, these enured automatically and immediately t o the benefit of the other Powers by virtue of the operation of the most-favourednation clauses. The second group consisted of multilateral treaties, the Madrid Convention of 1880 and the Act of Algeciras of 1906. The method of relying on individual action by interested Powers, equalized by the operation of the most-favoured-nation clauses, had led to abuse and it had become necessary not merely t o ensure economic liberty without discrimination, but also to impose an element of restraint upon the Powers and to take steps to render possible the development of Morocco into a modern State. Accordingly, the rights of protection were restricted, and some of the limitations on the powers of the Siiltan as regards foreigners, which had resulted frorp the provisions of the earlier bilateral treaties, were abated. The possi-

text: 188 J U D G M E N T O F 27 VI11 5 2 (u.s. N A T I O N A L S I N IVIOKOCCO)

text: bility of abuse in the exercise by Morocco of the powers thus extended, \vas taken care of by reserving a n element of supervision and control in the Diplomatic Body a t Tangier.

text: The third group of treaties concerned the establishment of the Protectorate. I t included the agreements which preceded the assumption b y France of a protectorate over Morocco, and the Treaty of Fez of 1912. Under this Treaty, Morocco remained a sovereign State b u t it made a n arrangement of a contractual character whereby France undertook t o exercise certain sovereign powers in the name and on behalf of Morocco, and, in principle, al1 of the international relations of Morocco. France, in the exercise of this function, is bound not only by the provisions of the Treaty of Fez, but also by al1 treaty obligations t o which Morocco had been subject before the Protectorate and which have not since been terminated or suspended b y arrangement with the interested States.

text: The establishment of the Protectorate, and the organization of the tribunals of the Protectorate which guaranteed judicial equality t o foreigners, brought about a situation essentially different from t h a t which had led t o the establishment of consular jurisdiction under the earlier treaties. Accordi~igly, France initiated negotiations designed t o bring about the renunciation of the regi~ne of capitulations b y the Powers exercising consular jurisdiction in the French Zone. I n the case of al1 the Powers except the United States, these negotiations led t o a renunciation of capitulatory rights and privileges which, in the case of Great Britain, was embodied in the Convention of July 29th, 1937. I n the case of the United States, there have been negotiations throughout which the United States had reserved its treaty rights.

text: The French Submission is based upon the Treaty between the United States and Morocco of September 16th, 1836, and it is common ground between the Parties that the United States is entitled t o exercise consular jurisdiction in the case of disputes arising between its citizens or. protégés. There is therefore no doubt as t o the existence of consular jurisdiction in this case. The only question t o be decided is the extent of t h a t jurisdiction in the year 1950, when the Application was filed.

text: The first point raised b y the Submissions relates t o the scope of the jiirisdictional clauscs of the Treaty of 1836, which read as follows :

text: "Article 30.-If any of the citizens of the United States, or any persons under their protection, shall have any dispute with each other, the Consul shall decide between the parties ; and whenever the Consul shall require any aid, or assistance from Our government, to enforce his decisions, it shall be immediately granted to him. ~ - Article 21.-If a citizen of the United States should kill or wound a Moor, or, on the contrary, if a Moor shall kill or wound a citizen of the United States, the law of the country shall take place, and equal justice shall be rendered, the Consul assisting at the trial ; and if any delinquent shall make his escape, the Consul shall not be answerable for him in any manner whatever." I t is argued t h a t Article 20 should be construed as giving consular jurisdiction over al1 disputes, civil and criminal, between United States citizens a n d protégés. France, on the other hand, contends t h a t the word "dispute" is limited t o civil cases. I t has been argued t h a t this word in its ordinary a n d natural sense would be confined t o civil disputes, a n d t h a t crimes are offences against the State and not disputes between private individuals.

text: The Treaty of 1836 replaced a n earlier treaty between the United States a n d Morocco which was concluded in 1787. The two treaties were substantially identical in terms a n d Articles 20 and 2 1 are the same in both. Accordingly, in construing the provisions of Article 20 -and, in particular, the expression "shall have any dispute with each otherJ'-it is necessary t o take into account the meaning of the word "disputeJJ a t the times when the two treaties were concluded. For this purpose it is possible t o look a t -the way in which the word "dispute" or its French counterpart was used in the different treaties concluded b y Morocco : e.g., with France in 1631 a n d 1682, with Great Britain in 1721, 1750, 1751, 1760 and 1801. It is clear t h a t in these instances the word was used t o cover both civil a n d criminal disputes. I t is also necessary t o take into account that, a t the times of these two treaties, the clear-ciit distinction between civil and criminal matters had not yet heen developed in Morocco. Accordingly, i t is necessary t o construe the word "dispute", a s used in Article 20, a s referring both t o civil disputes and t o criminal disputes, in so far as they relate t o breaches of the criminal law committed b y a United States citizen or protégé upon another 'CJnited States citizen or protégé.

text: The second point arises out of the United States Submission t h a t consular jurisdiction was acquired "in al1 cases in which a n American citizen or protégé was defendant through the effect of the mostfavoured-nation clause and through custom and usage" and that such jurisdiction was not affected by the surrender by Great Britain in 1937 of its rights of jurisrlictioil in the French Zone and has never been renounced expressly or impliedly by the United States.

text: I t is necessary to give special attention t o the most-favourednation clauses of the United States Treaty of 1836. There were two grants of most-favoured-nation treatment.

text: Article 14 provides : "The comrnercc with the United States shall be on the same footing as is the commerce with Spain, or as that with the most favorcd nation for the time being ; and their citizens shall be respccted and esteemed, and have full liberty to pass and repass Our country and seaports whenever they please, without interruption." Article 24 deals with the contingencies of war, but it contains a final sentence :

text: trade or otherwise, shall bc granted to any of the Christian Powers, the citizens of the United States shall be equally entitled to them." These articles entitle the Gnited States to invoke the provisions of other treaties relating to the capitulatory regime. The most extensive privileges in the matter of consular jurisdiction granted by Morocco were those which were contained in the General Treaty with Great Britain of 1856 and in the Treaty of Commerce and Navigation with Spain of 1861. Under the provisions of Article I X of the British Treaty, there was a grant of consular jurisdiction in al1 cases, civil and criminal, when British nationals were defendants. Similarly, in Articles IX, X and X I of the Spanish Treaty of 1861, civil and criininal jurisdiction was established for cases in which Spanish nationals were defendants.

text: Accordingly, the United States acquired by virtue of the mostfavoured-nation clauses, civil and criminal consular jurisdiction in al1 cases in which United States nationals were defendants.

text: The controversy between the Parties with regard to consular jurisdiction results from the renunciation of capitulatory rights and privileges by Spain in 1914 and by Great Britain in 1937. The renunciation by Spain in 1914 had no immediate effect upon the United States position because it was still possible to invoke the provisions of the General Treaty with Great Britain of 1856. After 1937, however, no Power other than the United States has exercised consular jurisdiction in the French Zone of Morocco and none has been entitled to exercise such jurisdiction. France contends that, from the date of the renunciation of the right of consular jurisdiction by Great Britain, the United States has not been entitled, either through the operation of the mostfavoured-nation cIauses of the Treaty of 1836 or by virtue of the provisioiis of any other treaty, to exercise consular jurisdiction beyond those cases which are covered by the provisions of Articles 20 and 21 of the Treaty of 1836. The United States Submission is based upon a series of contentions which must be dealt with in turn.

text: The first contention is based upon Article 17 of the Madrid Convention of 1880, which reads a s follows : "The right to the treatment of the most favoured nation is recognized by Morocco as belonging to al1 the Powers represented at the Madrid Conference."

text: Even if it could be assumed t h a t Article 17 operated a s ageneral grant of most-favoured-nation rights to the United States and was not confined to the matters dealt with in the Madrid Convention, i t would not follow that the United States is entitled to continue to invoke the provisions of the British and Spanish Treaties, after they have ceased to be operative as between Morocco and the two countries in question. The contention of the United States is based upon the view t h a t most-favoured-nation clauses contained in treaties with countries like Morocco must be given a different construction from t h a t which is accorded to similar clauses in treaties with other countries. Two special considerations need to be taken into account.

text: The first consideration depends upon the principle of a personal law and the history of the old conflict between two concepts of law and jurisdiction : the one based upon persons and the other upon territory. The right of consular jurisdiction was designed t o provide for a situation in which Moroccan law was essentially personal in character and could not be applied to foreigners.

text: The second consideration was based on the view t h a t the mostfavoured-nation clauses in treaties made with countries like Morocco should be regarded a s a form of drafting by reference rather than a s a method for the establishment and maintenance of equality of treatment without discrimination amongst the various countries concerned. According t o this view, rights or privileges which a country was entitled to invoke by virtue of a most-favoured-nation clause, and which were in existence a t the date of its coming into force, would be incorporated permanently by reference and enjoyed and exercised even after the abrogation of the treaty provisions from which they had been derived.

text: From either point of view, this contention is inconsistent with the intentions of the parties t o the treaties now in question. This is shown both by the wording of the particular treaties, and by the general treaty pattern which emerges from a n examination of the treaties made by Morocco with France, the Netherlands, Great Britain, Denmark, Spain, United States, Sardinia, Austria, Belgium and Germany over the period from 1631 to 1892. These treaties show that the intention of the most-favoured-nation clauses was t o establish and to maintain a t al1 times fundamental equality without discrimination among al1 of the countries concerned. Further, the provisions of Article 17 of the Madrid Convention, regardless of their scope, were clearly based on the maintenance of equality.

text: The contention would therefore run contrary to the principle of ecluality and it would perpetuate discrimination. I t can not support the Subinission of the United States regarding the extent of the consular jurisdiction in the French Zone.

text: The second contention of the Cnited States is based upon the geographically limited character of the renunciation of consular jurisdiction by Great Britain. This was restricted in its scope to the French Zone. I t has been claimed on behalf of the United States that Great Britain retained its jurisdictional rights in the Spanish Zone and i t has been argued that "the United States, which still treats Morocco as a single country, is entitled under the most-favoured-nation clause in Articlc 24 of its treaty to the same jurisdictional rights which Great Britain to-day exercises in a part of Morocco by virtue of the Treaty of 1856".

text: The Court is not called upon to determine the existence or extent of the jurisdictional rights of Great Britain in the Spanish Zone. I t is sufficicnt t o reject this argument on the ground that it would lead to a position in wl-iich tlic United States was entitled t o exercise consular jurisdiction in the French Zone notwithstanding the loss of this right by Great Britain. This result would be contrary to the intention of the most-favoured-nation clauses to establish and maintain a t al1 times fundamental equality without discrimination a s between the countries concerned. Reliance has also been placed upon the position of France and French nationals as regards the new tribunals of the Protectorate, which have been established for the purpose of exercising jurisdiction over foreigners and applying Moroccan laws to them in the French Zone. These tribunals have been constituted with French aid and under French direction and supervision. I t is suggested that these arc, in reality, consular courts and that the Cnited States is entitled to be placed, in this regard, in a position of equality with France. But the tri1)unals of the Protectorate in the French Zone are not in aiiy scnscb consular courts. They are Aloroccan courts, organized

text: J C D G M E N T O F 27 VI11 52 (u.s. NATIONALS I N BIOROCCO) 193 on French models and standards, affording guarantees of judicial equality to foreigners. Accordingly the Court can not accept this contention.

text: The third contention of the United States is based upon the nature of the arrangements which led to the termination of Spanish consular jurisdiction in the French Zone. By a Convention between France and Spain of November 27th, 1912, provision was made for the exercise by Spain of special rights and privileges in the Spanish Zone. B y a bilateral Declaration between France and Spain of March 7th, 1914, Spain surrendered its jurisdictional and other extraterritorial rights in the French Zone, and provision was made for the subsequent surrender by France of similar rights in the Spanish Zone. This was accomplished by a bilateral Declaration between France and Spain of November 17th of the same year.

text: The United States contends that, as both the Convention of 1912 and the Declarations of 1914 were agreements between France and Spain, and as Morocco was not named a s a party to either agreement, the rights of Spain under the earlier provision still exist de jure, notwithstanding that there may be a de facto situation which temporarily prevents their exercise. Even if this contention is accepted, the position is one in which Spain has been unable t o insist on the right t o exercise consular jurisdiction in the French Zone since 1914. The rights which the United States would be entitled to invoke by virtue of the mostfavoured-nation clauses would therefore not include the right to exercise consular jurisdiction in the year 1950. They would be limited to the contingent right of re-establishing consular jurisdiction a t some later date in the event of France and Spain abrogating the agreements made by the Convention of 1912 and the Declarations of 1914. France contends t h a t these agreements were concluded pursuant to the power which Morocco conferred on France by the provisions of the Treaty of Fez of 1912. The general terms of Articles V and VI were broad enough to give to France the conduct of the international relations of Morocco, including the exercise of the treaty-making power. The Convention and the Declarations must therefore be regarded as agreements made by a protecting Power, within the scope of its authority, touching the affairs of and intended to bind the protected State, as is made clear by the third paragraph of Article 1 of the Treaty of Fez of 1912 which provided that : "The Government of the Republic will come to a n understanding with the Spanish Government regarding the interests which the latter Government has in virtue of its geographical position and territorial possessions on the Moroccan coast." I n these circumçtances, it is necessary to hold that these agreements bound a n d enured t o

text: 2 1 t h e beiiefit of llorocco and t h a t t h c Spanish rights a s rcgartls coiisiilar jurisdiction came t o a n e n d de jitre a s n-ell a s de facto. It is necessary t o (ieal with another aspect of this question \+,hich arises out of t h e wording of t h e Ileclaration m a d c 11- France antl Spain on Rlarch 7 t h , 1914. This 1)eclaration contained t h c follo\\li n g provisions :

text: "Taking into considcration the guarantees of jiidicial cqiiality offered to foreigners by the French Tribunals of the Protectoratc, His Catholic Majesty's Government renoiinces claiming for its consuls, its subjects, and its establishments in the French Zone of the Shereefian Empire al1 the rights and privileges arising oiit of the regime of the Capitulations.

text: So far as the Government of the French Kepublic is concerned, it binds itself to renounce euqally the rights and privileges existiiig in favour of its consuls, its subjects, and its establishments in the Spanish Zone as soon as the Spanish Tribunals are establislied in the said Zone.

text: T h e Declaration whereby France complied with t h e above i i ~ i d e r taking was m a d c on November 17th, 1914, a n d iiicluded t h e follouling paragraph : "Taking into consideration the guarantees of judicial cqiiality offered to foreigners by the Spanish Tribunals in the Protectorate, the Government of the French Repuhlic herehy rcnounces claiming for its consuls, its siibjects and its cstablislimcnts in the Spanish %orle of the Shereefian Empire, al1 the rights :iii<I ~~rivilcgcs nrisiiig out of the regime of the Capitulatioiis."

text: I t will be observed t h a t b o t h Declarations ilse t h e words "renonce à réclamer" (renounces claiming) a n d t h e question has arisen whether these words were intended a s a surrender or renunciatioiî of al1 t h e rights a n d privileges arising o u t of t h e capitulatory regime, o r whether t h e v must be considered a s t e m ~ o r a r v I J undertakinps not U t o claim those rights o r privileges so long a s t h e giiarantees for judicial equality a r e maintained in t h e French Zone b y t h e tribunals of t h e Protectorate a n d so long a s t h e correspoiiding guarantees a r c maintained in t h e Spanish Zone.

text: T h e auestion is academic rather than uractical. Eveii if t h e words in ( ~ u e s t i o n should be constriied a s meaning a temporary undertaking not t o claim t h e rights antl privileges, t h e fact remains t h a t Spain, in 1950, as a result of these undertakings waç not entitled t o r.xcrcisc, consular jiirisdiction in t h e French Zone. I t follows t h a t t h e Vnitcd States \vould bc etlually not entitled t o cxercise such jiiristliction in t h e F r t ~ n c h Zone in t h e year 1950.

text: JUDGMENT O F 27 VI11 5 2 (u.s. NATIONALS I N MOROCCO) 195 Nevertheless. it is necessarv for the Court t o examine these Declarations in order to deterhine what the parties had in mind when they used the words in question. The parties in both Declarations used the expression "taking into

text: words which, if given their ordinary and natural meaning, state the consideration which led t o the making of the surrender, but they are not words which would normally be used if it was intended to make a conditional surrender. The Court is of opinion that the words "renonce à réclamer" must be regarded as an out-and-out renunciation of the capitulatory rights and privileges. This view is confirmed by taking into account the declarations and other arrangements made by France with other interested Powers designed to bring about the surrender of their jurisdictional and other extraterritorial rights in the French Zone.

text: The two Declarations made by France and Spain in 1914 show that they both regarded the expression "renonce à réclamer" as equivalent to a renunciation of the rights in question. In the Declaration of March 7th, 1914, the French Government bound itself "to

text: ation of November 17th, 1914, France gave effect to this obligation by using the expression "renonce à réclamer". I t is clear, therefore, that both France and Spain regarded this expression as proper for bringing about a complete surrender or renunciation of the rights and privileges in question.

text: On July 31st, 1916, the French Ambassador a t Washington sent to the Secretary of State of the United States "the text of the Declaration signed, with reference to the abrogation of capitulations in the French Zone of Morocco, by al1 the Powers signatory of the Algeciras Conference and by the South-American Republics". I n the text, thus transmitted, the expression used in English was "relinquishes its claim to al1 the rights and privileges growing out

text: long before the present dispute had arisen, France regarded the expression "relinquishes its claim" (or, in other words, "renonce à réclamer") as bringing about the abrogation of the privileges in question. The Declaration made by France and Spain of March 7th, 1914, was one of a series of agreements negotiated by France with more than twenty foreign States "for the surrender of their jurisdictional and other extraterritorial rights so far as concerned the French Zone of Morocco". At least seventeen of these agreements used the expression "renonce à réclamer" as a means of bringing about a complete abrogation of al1 rights and privileges arising out of the regime of Capitulations. They are referred to in the Counter- Memorial in the following words : "for the surrender of their jurisdictional and other extraterritorial rights", and again, "for the rcnunciation of extraterritorial rights". Further, al1 of the States nhich had signed thecc agreements abandoned forthyith the exercisc of consulzr jurisdicti~n or other cal)itiilatory rights or pri\-ileges in the French Zone. III these circumstances, it is necessary to conclude that the Spanish 1)cclaration of March 7th, 1914, brought about the surrender or renunciation of al1 Spanish jiirisclictional or other extraterritorial rights in the French Zone, and an abrogation of those provisions of the Spanish Treaty of 1861 which concern "the rights and privileges arising out of the regime of Capitulations". The Court, therefore, can not accept the contention that the United States is entitled, by virtue of the most-favoured-nation clauses, to invoke in respect of the French Zone those provisions of the Spanish Treaty of 186r which conccrn consiilar jurisdiction.

text: The fourth contention of the IInitetl States is that the extensive consular jurisdiction as it existed in hIorocco in the year 1880 was recognized and confirmed by the provisions of the Madrid Convention, and t h a t the Vnited States, as a party to that Con\.ention, thereby acqiiired a n autonomous right t o the exercise of such jurisdiction, indcpeiidently of the operation of the most-favourednation claiises. There can be no doubt that the cxercise of coiisular jurisdiction in J,lorocco in the !.car 1880 \vas. general, or that the Convention ~)resupposed the existence of such juristliction. I t dealt with the spccial position of protégés and coiitnincd 131-ovisions for the exercise of jurisdiction with regard to them. On the other hand, it is eclually clear that there were no pro1.isions of the Convention ~vhich expressly broiight about a confirmation of the then existing system of consular jurisdiction, or its establishment a s an independent and autonomous right. The purposes and objects of this Convention were stated in its Preamble in the follolving words : "the necessity of establishing, on fixccl and uniform bases, the exercise of the right of protection in Morocco and oi settling certain (~iicstions connected therewith.. . .". I n these circumstanccs, the Coiirt can not adopt a coilstriiction by implication of the provisions of the Madrid Convention which would go beyond the scope of its declared ptirposes and objects. Further, this contention would involve radical changes antl additions to the provisions of the Convention. The Coiirt, in its Opinion- Interpretation of Pence Treaties (Secontl I'hase) ( I . C . J. Reports 1950, 1). 229)-state(1 : " I t is the tliity of th(, (:oiii-t t o ii1tcrl)rc~t the Treaties, not to revise tlicm."

text: J U D G M E N T O F 27 VI11 52 (u.s. NATIONALS I N MOROCCO) 197 The fifth contention of the United States is that the consular jurisdiction in Morocco was recognized and confirmed b y various provisions of the Act of Algeciras, and that the United States acquired an autonomous right t o exercise such jurisdiction independently of the operation of the most-favoured-nation clauses. In 1906 the twelve Powers a t Algeciras al1 exercised capitulatory rights and privileges t o the extent t h a t they were prescribed either by the General Treaty with Great Britain of 1856 or by the Spanish Treaty of 1861. They did so b y virtue of direct treaty grant, as in the case of Great Britain or Spain ; or b y virtue of most-favourednation clauses, a s in the case of the United States ; or without treaty rights, but with the consent or acquiescence of Morocco, a s in the case of certain other States. Accordingly, the Act of Algeciras pre-supposed the existence of the regime of Capitulations, including the rights of consular jurisdiction, and many of its provisions assigned particular functions t o the then existing consular tribunals. Reference has been made in the course of the argument t o Articles 19, 23, 24, 25, 29, 45, 59, 80, 81, 87, 91, I O I , 102 and 119. For example, Chapter V, which deals with "the customs of the Empire and the repression of fraud and smuggling", contains Article 102, which provides :

text: "Every confiscation, fine or penalty must be imposed on foreigners by consular jurisdiction, and on Moorish subjects by Shereefian jurisdiction."

text: I n the conditions which existed a t the time, this Article made i t necessary for the prosecution of nationals of t h e twelve Powers for fraud and smuggling t o be dealt with in the consular courts.

text: Since 1937, the position has been one in which eleven of the Powers have abandoned their capitulatory privileges, and their consular jurisdiction has ceased t o exist. Accordingly, Morocco has been able t o make laws and t o provide for the trial and punishment of offenders who ;ire nationals of these eleven countries. The position of the United States is different, and must now be examined. Unlike the Madrid Convention, the Act of Algeciras was general in its scope and was not confined t o a limited problem such as that of protection. On the other hand, the interpretation of the provisions of the Act must take into account its purposes, which are set forth in the Preamble in the following words :

text: "Inspired by the interest attaching itself to the reign of order, peace, and prosperity in Morocco, and recognizing that the attainment thereof can only be effected by means of the introduction of reforms based upon the triple principle of the sovereignty and indepcndcnce of His Majesty the Sultan, the integrity of Iiis domains,

text: Keither the -4rticles to which reference has been made above nor any other provisions of the Act of Algeciras purport t o establish consiilar jurisdiction or t o confirm the rights or privileges of the regime of Capitulations which were then in existence. The qiiestion, therefore, is w!iethi:r the cstaF,lishment or confirmation of such jurisdiction or privileges can be based upon the implied intentioiis of the parties to the Act as indirated by its provisions. -4n interprc'tation, b y implication from the provisions of the Act, establishing or confirming consular jiirisdiction would involve a transformation of the then existing treaty rights of most of the t\vel\.e Powers into neuT and autononious rights based upon the Act. It \\~ould change treaty rights of the Powers, some of them termiilable a t short notice, e.g., those of the United States which were terminable by twelve moi:ths' notice, into rights enjoyable for a n iinlimited period by the Powers and incapable of being terminated or modified by nforocco. Neither the preparatory work nor the Preainble gi~:es the least indication of any such intention. The Court fiiicis itself uiiable to imply so fundnmental a change in the ciiaracter of the then oxisting treaty rights as would be involi~ed iii the acceptance of this contention.

text: There is, however, another aspect of this problem nrising out of the particular Articles t o ~vhich refercnce has beeii made above. These are the Articles which iilc.lude provisions necessarily involving the exercise of consular jurisdictiori. In this case, there is a clear indication of the intention of the parties to the effect that certain matters are to be dealt with t,y the consular tribunals and t o this extent it is possible to interpret the provisions of the .Act as establishiiig or confirmiiig the exerc:ist: of consiilar jurisdiction for these limited purposes. The maintenance of consular jurisdiction iii so far as it may be riecessarv to ;:i\~e cffect to these specific provisions can, therefore, be justified as based upon the necessary inteiidmeiit of the provisions of the Act. This result is confirmed by the provisions of Articles IO and 16 of the Con\.eiitioii between Great Britaiii and France of July zgth, 1937. These Articles refer to the jiirisdictional privileges "accorded or1 the basis of existing treaties" or "enjoyed by the United States of A~nerica under treüties a t present in force". They pre-suppose, therefore, that the jiirisdictional privileges of the United States, even after the surrender of British capitulatory rights, would not be liinited to the jurisdiction provided by Articles 20 and 21 of the Treaty with Morocco of 1836. This view is also supported by the provisions of Article 4 of the Protocol of Signature t o this Convention. This Article provided for the abrogation of certain provisions of the General Treaty of 1856 and, as regards the Act of Algeciras, for the renuiiciation "of the right t o rely upoii Articles I to 50, 54 to 6 5 , 70, 71, al1 provisions of Article 72 clfter the word 'permit',

text: 75, 76, 80, 97, 101, 102, 104, 113 to I I ~ " , and it also provided that "in Article 81 the words 'by the competent consular authority' must be deemed t o be omitted and in Article 91, the word 'competent' must henceforth be substituted for the word 'consular' ". I t is clear that, in 1937, France (representjng Morocco) and Great Britain were proceeding upon the assumption that certain of the provisions of the Act of Algeciras recognized a limited consular jurisdiction for the purposes of the judicial proceedings therein described. The Court is not called upon t o examine the particular articles of the Act of Algeciras which are involved. I t considers it sufficient to state as its opinion that the consular jurisdiction of the United States continues to exist to the extent that may be necessary t o render effective those provisions of the Act of Algeciras which depend on the existence of consular jurisdiction. This interpretation of the Act, in some instances, leads to results which may not appear to be entirely satisfactory. But that is an unavoidable consequence of the nlanner in which the Algeciras Conference dealt with the question of consular jurisdiction. The Court can not, by way of interpretation, derive from the Act a general rule as to full consular jurisdiction which it does not contain. On the other hand, the Court can not disregard particular provisions involving a limited resort to consular jurisdiction, which are, in fact, contained in the Act, and which are still in force as far as the relations between the United States and Morocco are concerned.

text: The sixth contention of the United States is that its consular jurisdiction and other capitulatory rights in Morocco are founded cpon "custom and usage". This contention has been developed in two different ways. The first relates to custom and usage preceding the abandonment of capitulatory rights in the French Zone by Great Britain in 1937. The second relates to the practice since that date. Ilealing first with the period of 150 years, 1787 t o 1937, there are two considerations which prevent the acceptance of this contention. The first is that throughout this whole period, the United States consular jurisdiction was in fact based, not on custom or usage, but on treaty rights. At al1 stages, it was based on the provisions either of the Treaty of 1787 or of the Treaty of 1836, together with the provisions of treaties concluded by Morocco with other Powers, especially with Great Britain and Spain, invoked by virtue of the most-favoured-nation clauses. This was the case 11ot inerely of the United States but of most of the countries whose nationals were trading in Morocco. I t is true that there were Powers represented a t the Conference of Madrid in 1880 and a t Algeciras in 1906 which had no treaty rights but were exercising consular jurisdiction with zoo JUDGMENT OF 27 VIII 52 (u.s. NATIONALS I N MOROCCO)

text: the consent or acquiescence of Morocco. I t is also true that France, after the institution of the Protectorate, obtained declarations of renunciation from a large number of other States which were in a similar position. This is not enough t o establish that the States exercising consular jurisdiction in pursuance of treaty rights enjoyed in addition a n independent title thereto based on custom or usage.

text: The second consideration relates t o the question of proof. This Court, in the Asylum Case (I. C. J. Reports 1950, pp. 276-z77), when dealing with the question of the establishment of a local custom peculiar t o Latin-American States, said : "The Party which relies on a custom of this kind must prove that this custom is established in such a manner that it has become binding on the other Party. The Colombian Government must prove that the rule invoked by it is in accordance with a constant and uniform usage practised by the States in question, and that this usage is the expression of a right appertaining to the State granting asylum and a duty incumbent on the territorial State. This follows from Article 38 of the Statute of the Court, which refers to international custom 'as evidence of a general practice accepted as law'."

text: I n the present case there has not been sufficient evidence t o enable the Court t o reach a conclusion that a right t o exercise consular jurisdiction founded upon custom or usage has been established in such a manner that it has become binding on Morocco.

text: This contention has also been based upon the practice since the date when the treaty right of the United States t o exercise extended consular jurisdiction and derivative rights came t o a n end with the coming into operation of the Convention between France and Great Britain of 1937.

text: During this period France and the United States were in negotiation with regard to a number of questions, including t h e renunciation of capitulatory rights. There are isolated expressions t o be found in the diplomatic correspondence which, if considered witho u t regard t o their context, might be regarded as acknowledgments of United States claims to exercise consular jurisdiction and other capitulatory rights. On the other hand, the Court cttn not ignore the general tenor of the correspondence, which indicates t h a t a t al1 times France and the United States were looking for a solution based upon mutual agreement and that neither Party intended t o concede its legal position. I n these circumstance, the situation in which the United States continued after 1937 to exercise consular jurisdiction over al1 criminal and civil cases in which United States nationals were defendants, is one that must be regarded as in the nature of a provisional situation acquiesced in by the Moroccan authorities.

text: Accordingly, i t is necessary t o conclude that, apart from the special rights under Articles 20 and 21 of the Treaty of 1836 a n d those which arise from the provisions of the Act of Algeciras, t o which reference has been made above, the United States claim t o exercise and enjoy, as of right, consular jurisdiction and other capitulatory rights in the French Zone came t o a n end with the termination of "al1 rights and privileges of a capitulatory character in the French Zone of the Shereefian Empire" by Great Britain, in pursuance of the provisions of the Convention of 1937.

text: The Court will now consider the claim t h a t United States nationals are not subject, in principle, t o the application of Moroccan laws, unless they have first received the assent of the United States Government.

text: The French Submission is this regard reads a s follows :

text: "That the Government of the United States of America is not entitled to claim that the application of al1 laws and regulations to its nationals in Morocco requires its express consent ;

text: That the nationals of the United States of America in Morocco are subject to the laws and regulations in force in the Shereefian Empire and in particular the regulation of December 3oth, 1948, on imports not involving an allocation of currency, without the prior consent of the United States Government."

text: The United States Submission in this regard reads a s follows :

text: "4. Under the regime of extraterritorial jurisdiction now exercised by the United States in Morocco, United States citizens are not subject, in principle, to the application of Moroccan laws.

text: Such laws become applicable to the United States citizens only if they are submitted to the prior assent of the United States Government and if this Government agrees to make them applicable to its citizens. The Dahir of December 30, 1948, not having been submitted to the prior assent of the United States Government, cannot be made applicable to United States citizens."

text: The claim t h a t Moroccan laws are not binding on United States nationals, unless assented t o by the Government of the United

text: States, is linlted with the regime of Capitulations, and it will not be necessary t o repeat the considerations which have already been discussed in dealing with consular jurisdiction.

text: There is no provision in any of the treaties which have been under consideration in this case conferring upon the United States a n y such right. The so-called "right of assent" is merely a corollary of the system of consular jurisdiction. The consular courts applied their own law and they were not bound in a n y way b y RIoroccan law or Moroccan legislation. Before a consular court could give effect to a Moroccan law it was necessary for the foreign Power concerned t o provide for its adoption as a law binding on the consul in his judicial capacity. I t was the usual practice to do this b y embodying it either in the legislation of the foreign State or in ministerial or consular decrees of that State issued in pursuance of delegated powers. The foreign State could have this done or it could refuse t o provide for the enforcement of the law. There was a "right of assent" only to the extent that the intervention of the consular court was necessary t o secure the effective enforceinent of a Moroccan lalv as against the foreign nationals.

text: I n the absence of any treaty provisions dealing with this matter, i t has been contended t h a t a "right of assent" can be based on custom, usage or practice. I t is unnecessary t o repeat the reasons ~vhich have been given for rejecting custom, usage and practice as a basis for extended consular jurisdiction, and which are largely applicable to the "right of assent". I t is, however, necesiary t o point out t h a t the very large number of instances in which Moroccan laws were referred t o the United States authorities can readily be explained as a convenient way of ensuring their incorporation in ministerial decrees binding upon the consular courts. In that way, and in t h a t way only, could these laws be made enforceable as against United States nationals so long as the extended consular j urisdiction was being exercised.

text: The problem arises in three ways, which must be considercd separately. The first is in cases where the application of a Moroccan law t o LTnited States nationals would be contrary to the treaty rights of the United States. I n such cases, the application of hforoccan laws, whether directly or indirectly t o these nationals, iinless assented to by the Vnited States, would be contrary t o international law, and the dispute which might arise therefrom would have t o be dealt lvi th according to the ordinary methods for the settlement of international disputes. These considerations apply t o the Decree of 1)ecembcr 3oth, 1948, \\-hich the Court has found t o be contrary to tre,nty rights of the C7nited States.

text: The second way in which the problem arises is in cases in which the CO-operation of the consular courts is required in order t o enforce the Moroccan legislation. I n such cases, regardless of whether the application of the legislation would contravene treaty rights, the assent of the United States would be essential t o its enforcement by the consular courts. The third way in which the problem arises is in cases where the application t o United States nationals, otherwise than by enforcement through the consular courts, of Moroccan laws which do not violate any treaty rights of the United States is in question. I n such cases the assent of the United States authorities is not required.

text: Accordingly, and subject t o the foregoing qualifications, the Court holds t h a t the United States is not entitled t o claim that the application of laws and regulations t o its nationals in. the French Zone requires its assent.

text: The Government of the United States of America has submitted a Counter-Claim, a part of which relates t o the question of immunity from Moroccan taxes in general, and particularly from the consumption taxes provided by the Shereefian Dahir of February 28th, 1948. The following Submissions are presented with regard t o these questions : On behalf of the Government of the United States : " 2 . ~ h e treaties exempt American nationals from taxes, except as specifically provided by the same treaties ; to collect taxes from American nationals in violation of the terms of the treaties is a breach of international law. Such taxes can legally be collected from American nationals only with the previous consent of the United States which operates to waive temporarily its treaty right, and from the date upon which such consent is given, unless otherwise specified by the terms of the consent. Consumption taxes provided by the Dahir of February 28, 1948, which were collected from American nationals up to August 15, 1950, the date on which the United States consented to these taxes, were illegally collected and should be refunded to them.

text: 3. Since Moroccan laws do not become applicable to American citizens until they have received the prior assent of the United States Government, the lack of assent of the United States Government to the Dahir of February 28, 1948, rendered illegal the collection of the consumption taxes provided by that Dahir."

text: On behalf of the Government of France : "That no treaty has conferred on the United States fiscal immunity for its nationals in Morocco, either directly or through the cffcct of the most-favoured-nation clause ;

text: 3 1

text: That the laws and regulations on fiscal matters which have been put into force in the Shereefian Empire are applicable to thenationals of the United States without the prior consent of the Government of the United States ; That, conse(luently, consumption taxes provided by the Dahir of February 28th, 1948, have been legally collected from the nationals of the United States, and should not be refunded to them."

text: The Government of the United States contends that its treaty rights in Rlorocco confer upon United States nationals a n immunity fronl taxes except the taxes specifically recognized and permitted by the treaties. This contention is based on certain bilateral treaties with Morocco as well a s on the Madrid Convention of 1880 and the Act of Algeciras of 1906. The Court will first consider the contention that the right to fiscal immunity can be derived from the most-favoured-nation clauses in Article 24 of the Treaty between the Cnited States and JIorocco of 1836 and in Article 17 of the Madrid Convention, in conjunction with certain provisions in treaties betu-een hlorocco and Great Rritain and Morocco and Spain. The General Treaty between Great Britain and Morocco of 1856 provided in the second paragraph of Article IV that British subjects "shall not be obliged to pay, under any pretence whatever, any taxes or impositions". The Treaty between hlorocco and Spain of 1861 provided in Article V that "Spanish subjects can not under a n y pretext be forced to pay taxes or contributions".

text: I t is submitted on behalf of the United States t h a t the mostfavoured-nation clauses in treaties with countries like Morocco were not intended to create merely temporary or dependent rights, but n e r e intended to incorporate permanently these rights and render them independent of the treaties by which they were originally accorded. Tt is consequently contended that the right to fiscal immunity accorded by the British Geileral Treaty of 1856 and the Spanish Treaty of 1861, was incorporated in the treaties which guaranteed to the United States most-favoured-nation treatment, with the result that this right would continue even if the rights and privileges granted by the Treaties of 1856 and 1861 should come to a n end. For the reasons stated above in connection with consular jurisdiction, the Court is unable to accept this contention. I t is not established t h a t most-favoured-nation clauses in treaties with Morocco have a meaning and effect other than such clauses in other treaties or are governed by different rules of law. When pro- \risions granting fiscal immunity in treaties between Morocco and third States have been abrogated or renounced, these provisions can no longer be relied upon by virtue of a most-favoured-nation clause. I n such circumstances, it becomes necessary to examine

text: 205 J U D G M E N T O F 27 VI11 52 (u.s. NATION.4LS I N MOROCCO)

text: whether the above-mentioned provisions in the Treaties of 1856 and 1861 are still in force.

text: The second paragraph of Article IV in the General Treaty with Great Britain was ahrogated by the Franco-British Convention of July zgth, 1937, Protocol of Signature, Article 4 (a). As from the coming into force of this Convention, that paragraph of Article IV of the General Treaty of 1856 could no longer he relied upon hy the United States by virtue of a most-favoured-nation clause. As already held above, the effect of the neclaration made by France and Spain of March 7th, 1914, was a n unconditional renunciation by Spain of al1 the rights and privileges arising out of the regime of Capitulations in the French Zone. This renunciation involved, in the opinion of the Court, a renunciation by Spain of the right of its nationals to immunity from taxes under Article V of its Treaty with Morocco of 1861, since such a general and complete immunity from taxes must be considered as a n elenlent of the regime of capitulations in Morocco. When Spain relinquished al1 the capitulatory rights, it must thereby be considered a s having given u p the rights to fiscal immunity. This view is confirmed by the attitude taken by number of other States in this respect. Great Britain renounced al1 rights and privileges of a capitulatory character in the French Zone by Article I of its Convention with France of 1937. I n the Protocol of Signature it was declared t h a t the effect of this Article and of Article 16 is to abrogate a number of articles in the General Treaty of 1856, including, as has been stated above, the second paragraph of Article IV. This seems t o show that France, representing Morocco, and Great Britain were proceeding on the assumption that the tax immunity accorded by that Article w-as a right of a capitulatory character. The other States, which, during the years 1914-1916, equally renounced al1 rights and privileges arising out of the regime of Capitulations in the French Zone, have acquiesced in the taxation of their nationals. For these reasons, the Court holds that the right t o t a x immunity accorded by Article V of the Spanish Treaty of 1861, having been surrendered by Spain, can no longer be invoked by the United States by virtue of a most-favoured-nation clause. The Government of the United States has further contended that it has a n independent claim to t a x immunity by virtue of being a party to the Convention of Madrid and the Act of Algeciras. I t contends that by these instruments a regime as t o taxes was set up, which continued the tax immunity in favour of the nationals of foreign States, thereby confirming and incorporating this preexisting regime, which therefore is still in force, except for the States which have agreed t o give i t up. The Court is, however, of opinion that the Madrid Convention did ilot confirm and incorporate the then existing principle of t a x immunity. I t merely pre-supposed the existence of this principle and curtailed it by exceptions in Articles 1 2 and 13 without modifying its legal basis. I t did not provide a new and independent ground for any claim of tax immunity. Similar considerations apply t o the Act of Algcciras, which further curtailed the regime of t a x immunity by exceptions in Articles 59, 61, 64, and 65. I t did not provide a n y new and independent legal basis for exemption from taxes.

text: The Government of the United States has invoked Articles 2 and 3 of the Madrid Convention, which grant exemption from taxes, other than those mentioned in Articles 12 and 13, t o certain "protected persons". But the "protégés" mentioned in Articles 2 and 3 constituted only a limited class of persons in the service of diplomatic representati~~es and consuls of foreign States. No conclusion a s to tax immunity for nationals of the United States in general can, in the opinion of the Court, be drawn from the privileges granted t o this limited class of protected perçons.

text: I t is finally contended, on behalf of the Government of the Lnited States, that the consumption taxes imposed by the Dahir of February 28th, 1948, are in contravention of special treaty rights. Refercnce is made to the Treaty of Commerce between Great Britain and Morocco of 1856, Articles I I I , VII, VI11 and I X , and it is submitted that United States nationals are exempt from those consumption taxes by virtue of these Articles in conjunction with the most-favoured-nation clauses in the Treaty of 1836 between Morocco and the United States. These four Articles in the British Commercial Treaty of 1856 relate to taxes and duties on eoods e x ~ o r t e d " from or i m ~ o r t e d into Rlorocco, or on goods conveyed from one nloroccan port t o another. The consumption taxes provided by the Dahir of February 28th, 1948, are, according to its Article 8, payable on al1 products whether they are imported into the French Zone of Morocco or manufactured or produced there. They can not, therefore, be assimilated to the particular taxes mentioned in the articles of the British Commercial Treaty, invoked by the United States, nor can they be considered as a customs duty. The mere fact that it may be convenient in the case of imported goods to collect the consumption t a x a t the Customs Office does not alter its essential character as a t a x levied upon al1 goods, whether imported into, or produced in, Morocco. I t may be recalled in this connection that the Permanent Court of International Justice recognized that fiscal duties collected a t the frontier on the entry of certain goods were not to be confused with customs duties ; in its Judgment of June 7th, 19-32> in the Free Zones Case (P.C.I.J., Series A/B, No. 46, 11. 172), it laid down that "the withdrawal of the customs line does not affect the right of the French Government t o collect a t the political frontier fiscal duties not possessing the character of customs duties".

text: The Court is, consequently, unable to hold t h a t the imposition of these consumption taxes contravenes a n y treaty rights of the United States. I n such circumstances the question of a partial refund of consumption taxes paid by United States nationals does not arise. I t follows from the above-mentioned considerations t h a t the Government of the United States is not entitled to claim that taxes, including consumption taxes, shall be submitted t o the previous consent of that Government before they can legally be collected from nationals of the United States. Since they are, in the opinion of the Court, not exempt from the payment of any taxes in the French Zone, there is no legal basis for the claim that laws and regulations on fiscal matters shall be submitted t o United States authorities for approval. The conclusion which the Court has thus arrived a t seems to be in accordance with the attitude which other States have taken with regard to this question. S a x immunity in the French Zone is not claimed either by the United Kingdom or by Spain or a n y other State which previously enjoyed such a privileged position. The only State now claiming this privilege is the United States, though no t a x immunity is guaranteed b y its Treaty with Morocco of 1836. To recognize tax immunity for United States nationals alone would not be compatible with the principle of equality of treatment in economic matters on which the Act of Algeciras is based.

text: The final Submission of the United States of America upon t h a t part of its Counter-Claim which is based upon Article 95 of the General Act of Algeciras, is a s follows : "1. Under Article 95 of the Act of Algeciras, the value of imports from the United States must be determined for the purpose of customs assessments by adding to the purchase value of the imported merchandise in the United States the expenses incidental to its transportation to the custom-house in Morocco, exclusive of al1 expenses following its delivery to the custom-houçe, such as customs duties and storage fees. I t is a violation of the Act of Algeciras and a breach of international law for the customs authorities to depart from the method of valuation so defined and to determine the value of imported merchandise for customs purposes by relying on the value of the imported merchandisc on the local Moroccan market."

text: The final Submission of the Government of France upon this part of the Counter-Claim is as follows : "That Article 95 of the Act of Algeciras defines value for customs purposes as the value of the merchandise at the time and at the place where it is presented for customs clearance ;" which, a s was made clear in the oral argument, means the value in the local, i.e. Moroccan, market. The necessity, evidenced by Articles 95, 96 and 97 of the Act of Algeciras, of creating some kind of machinery for securing a just valuation of goods by the Customs authorities would appear to follow, itzter alia, (a) froni the principle of economic equality which is one of the principles underlying the Act, and ( b ) from the fact that the import duties were fixed by the signatory Powers a t 126 %. Clearly, it would be easy, if it were desired to do so, to discriminate against particular importers by means of arbitrary valuations or to evade a fixed limitation of duties by means of inflated valuations. B u t while the signatory Powers realized the necessity for some such machinery, it does not appear that the machinery has given rise to a practice which has been consistently followed since the Act entered into force. Article 95 specifies four factors in valuing merchandise : ( a ) the valuation must be based upon its cash wholesale value ;

text: ( b ) the time and place of the valuation are fixed a t the entry of

text: the merchandise a t the custom-house ; (c) the merchandise must be valued "free from customs duties a n d storage dues", t h a t is to say, the value must not i~iclude these charges ; (d) the valuation must take account of depreciation resulting from damage, if any. Article 96, which relates only to the principal goods taxed by the Moorish Customs Administration, contemplated a n annual fixing of values by a "Committee on Customs Valuations" sitting a t Tangier. The local character of this Committee, and of the persons whom it is directed to consult, should be noted. The schedule of values fixed by it was to be subject to revision a t the end of six months if any considerable changes had taken place in the value of certain goods. Article 96 is procedural and is intended to operate within the ambit of Article 95.

text: Article 97 provided for the establishnient of a permanent "Cominittee of Customs", intended to supervise the customs service on a high level and to watch over the application of Article 96 and 97, subject to the advice and consent of the "L)iplomatic Body a t Tangier". Tfic Committee, on Customs Valuations referred t o in Article 96 a1q)cars to have lai)sed in 1924 when the. Convention of L)ccember 18th, 1923, on the Tangier Zone came into force, and replaced it by a Committee representing the three Zones. The latter Com- . mittee has not met since 1936. Articles 82 t o 86 of the Act, which relate t o declarations by importers, must also be noted. Article 82 requires a n importer to file a declaration, which must contain a detailed statement setting forth the nature, quality, weight, number, measurement and value of the merchandise, a s well as the nature, marks and numbers of the packages containing the same. A declaration of value made b y the importer can clearly not be decisive, because he is a n interested party, but a t the same time he knows more about the goods than anybody else, and, unless fraud is suspected, it is right that the value appearing in the declaration should form a n important element in the valuation about to be made. I t can not be said t h a t the provisions of Article 95 alone, or of Chapter V of the Act considered as a whole, afford decisive evidence in support of either of the interpretations contended for by the Parties respectively. The four factors specified by Article 95 are consistent with either 'interpretation ; in particular, the expression " free from customs duties and storage dues" affords no clear indication, because, if the value in the country of origin, increased by the amount of insurance, freight, etc., is t o be taken a s the basis, this expression means "before entering the customs office and paying duties" ; whereas, if the value in the local market is t o be accepted as the basis, some such expression is necessary (or a t any rate prudent) in order t o indicate that the duty of 124 % must not be levied on a value which already contains the 124 %.

text: The Court has examined the earlier practice, and the preparatory work of the Conference of Algeciras of 1906, but not much guidance is obtainable from these sources. The Commercial Agreement made between France and Rlorocco, dated October 4th, 1892, consists of two letters exchanged between the Foreign Minister of Morocco and the Minister of France in Morocco, the latter of which contains the expression :

text: "These goods shall be assessed on the basis of their cash wholesale market value in Lhe port of discharge, in reals of vellon."

text: A preliminary draft of the Act (p. 97 of French Docume~zts diplomatiques, 1906, fascicule 1, Agaires d u Maroc, entitled " I I . Protocoles e t comptes rendus de la Conférence d'Algésirasn) contains the following article :

text: "Article XIX.-Import and export duties shall be paid forthwith in cash at the custom-house where clearance is effected. The ad valorenz duties shall be determined and paid on the basis of the cash wholesale value of the goods at the port of discharge or the customhouse in the case of imports. Merchandise can only be removed after the payment of customs duties and storage.

text: The holding of the goods or the collection of duty shall, in every case, be made the subject of a regular receipt delivered by the officer in charge."

text: L a t e r (p. IOO), upon a British proposal, the second sentence was modified so a s to read :

text: "The ad valorem duties shall be determined and paid on the basis of the cash wholesale value of the goods a t the custom-house, free from customs duties."

text: A t a later stage t h e German delegation made the following proposal (ibid., p. 232) :

text: "The ad valorem duties imposed on imports in Morocco shall be assessed on the value of the imported goods in the place of shipment or of piirchase, to which shall be added the transport and insurance

text: T h a t amendment was rejected, from which i t m a y be inferred t h a t the value in t h e country of origin was rejected a s t h e conclusive test. I t is also necessary t o examine t h e practice of t h e customs authorities since 1906, in so far a s i t appears from t h e materials made available t o the Court by the Parties. I t seems t h a t there has been a reluctance t o attribute a decisive effect t o a n y single factor in valuing merchandise. F o r instance, in a letter of July 16th, 1912, from t h e Controller of Moroccan Customs t o t h e American Minister a t Tangier, it is stated t h a t t h e customs officers "apply for t h e appraisal of merchandise t h e rules established b y t h e Act of Algeciras a n d b y t h e Customs regulations. They use market prices, bills of sale a n d their professional knowledge. " T h e following excerpts occur later in the same letter : "The bill of sale is an element of valuation, but it is not conclusive evidence.

text: The customs has always proceeded as described above in regard to petroleum products imported from Fiume and from Trieste ; for which importers furnish means of appraisal by attaching to the declarations the original bills of sale, of which the prices are compared with the market prices of origin.

text: This value [i.e. for customs purposes] includes the purchase price of the petroleum f.0.b. New York, increased by al1 expenses subsequent to the purchase, such as export duties paid to foreign custoins, transportation, packing, freight, insurance, handling, .j S unloading, etc.-in short, al1 that contributes to make up at the moment of presentation at the customs office the cash wholesale value of the product, according to which, under Article 95 of the Act of Algeciras, the duties must be paid. > >

text: I t is also interesting to note from the Minutes of the meeting a t Tangier of the Committee on Customs Valuations on June 7th, 1933, t h a t the Director of Customs explained :

text: application of the duties concerned, the invoice of origin, transport costs to the port of importation, the value of the merchandise on the local market on arrival, general market price lists and any other information which may be useful to fix the value upon which the duty is based". On the other hand, passages can be found in the Customs regulations and in circulars issued by the Rloroccan Debt Control in which the emphasis is laid upon the value in the Moroccan market a s the important factor. The latest "Tables of minimum and maximum values of the principal merchandise imported into Morocco", adopted by the Committee on Customs Valuations a t their last meeting on March t th, 1936, a t Tangier, reveal a range so great t h a t they could only afford the most general guidance as to the actual valuation of a particular cargo or piece of merchandise.

text: The general impression created by a n examination of the relevant materials is t h a t those responsible for the administration of the customs since the date of the Act of Algeciras have made use of al1 the various elements of valuation available to them, though perhaps not always in a consistent manner. I n these circumstances, the Court is of the opinion that Article 95 lays down no strict rule on the point in dispute. I t requires a n interpretation which is more flexible than either of those which are respectively contended for by the Parties in this case. The Court is of the opinion t h a t it is the duty of the Customs authorities in the French Zone, in fixing the valuation of imported goods for customs purposes, to have regard t o the following factors :

text: (a) the four factors specified by Article 95 and mentioned above ;

text: (b) the contents of the declaration which the importer is required by the Act to file in the custom-house ; (c) the wholesale cash value in the market of the French Zone ;

text: (d) the cost in the country of origin, increased by the cost of loading and unloading, insurance, freight, and other charges incurred before the goods are delivered a t the custom-house ;

text: (e) the schedule of values, if any, which may have been prepared 11y the Committee on Customs Valuations referred t o in Article 96 or b y any committee which may have been substituted therefor b y arrangements to which France and the United States have assented expressly or by implication ; ( f ) a n y other factor which is required by the special circumstances of a particular consignment or kind of merchandise.

text: The factors referred t o above are not arranged in order of priority biit should operate freely, within any limits that have been, or may be, prescribed under Article 96 of the Act ; and, in view of the governing principle of economic equality, the same methods must be applied without discrimination t o al1 importations, regardless of the origin of the goods or the nationality of the importers. The power of making the valuation rests with the Customs authorities, but it is a power which must be exercised reasonably and in good faith.

text: For these reasons,

text: on the Submissions of the Goiw-nment of the French Repiiblic,

text: iinanimously, Rejects its Submissions relating to the Decree of December 3oth, 1948, issued by the Resident (;ciicral of the French Republic in M orocco ;

text: unariimousl y, Finds t h a t the United States of America is entitled, by virtue of the provisions of its Treaty with Morocco of Septemher 16th, 1836, t o exercise in the French Zone of Morocco consular jurisdiction in al1 disputes, civil or criminal, between citizens or protégés of the Cnited States ;

text: by ten votes t o one, Finds that the IJnited States of America is also entitled, by virtue of the General Act of Algeciras of April ?th, 1906, t o exercise in the French Zone of Morocco consular jurisdiction in al1 cases, civil or criminal, brought against citizens or protégés of the United States, to the extent required by the provisions of the Act relating t o consular j urisdiction ;

text: by six votes t o five, Rejects, except as aforesaid, the Submissions of the United States of America concerning consular jurisdiction ;

text: 213 J U D G M E N T O F 27 VI11 52 (u.s. NATIONALS I N MOROCCO)

text: unanimously, Finds that the United States of America is not entitled' to claim that the application to citizens of the United States of al1 laws and regulations in the French Zone of Morocco requires the assent of the Government of the United States, but that the consular courts of the United States may refuse to apply to United States citizens laws or regulations which have not been assented to bv the Government of the United States ;

text: on the Counter-Claim of the Government of the United States of America,

text: by six votes t o five,

text: Rejects the Submissions of the United States of America relating t o exemption from taxes ;

text: by seven votes to four,

text: Rejects the Submissions of the United States of America relating t o the consumption taxes imposed by the Shereefian Dahir of February 28th, 1948 ;

text: by six votes to five,

text: Finds that, in applying Article 95 of the General Act of Algeciras, the value of merchandise in the country of origin and its value in the local Moroccan market are both elements in the appraisal of its cash wholesale value delivered a t the customhouse.

text: Done in English and French, the English text being authoritative, a t the Peace Palace, The Hague, this twenty-seventh day of August, one thousand nine hundred and fifty-two, in three copies, one of which will be placed in the archives of the Court and the others will be transmitted to the Government of the French Republic and to the Government of the United States of America, respect ive1 y.

text: (Signed) Arnold D. MCNAIR, President .

text: (Signed) E. HAMBRO,

text: Registrar.

text: J U D G M E N T OF 27 VIII 5 2 (u.s. NATIONALS I N IVIOROCCO) 214 Judge Hsu Mo declares that, in his o?inion, the jurisdictional rights of the United States of America in the French Zone of Norocco are limited t o those provided in Articles 20 and 21 of its Treaty with Morocco of September 16th, 1836, and t h a t the United States is not entitled to exercise consular jurisdiction in cases involving the application to Cnited States citizens of those provisions of the Act of Algeciras of 1gc6 which, for their enforcement, carried certain sanctions. The Act of Algeciras, a s far a s the jurisdictional clauses are concerned, was concluded on the basis of a kind of consular jurisdiction as it existed a t that time in its full form and in complete uniformity among the Ponrers in hlorocco. The various provisions, in referring to "consular jurisdiction", "competent consular authority", "consular court of the defendant", etc., clearly meant that jurisdiction which was being uniformly exercised by foreign States over their respcctive nationals as defendants in al1 cases. They did not mean such limited jurisdiction as might be exercised bj- the United States consular courts, in accordance with Article 20 of the Moroccan-United States Treaty of 1836, in cases iiivolving Cnited States citizens or protégés only. When, therefore, consular jurisdiction in its full form ceased to exist in respect of al1 the signatory States to the Act of Algeciras, the basis for the application by the various consular tribunals of the measures of sanction provided in that Act disappeared, and the ordinary rules of international law came into play. Consequently, such sanctions should thencefort11 be applied by the territorial courts, in the case of United States citizens as well a s in the case of al1 other foreign iiationals. As regards reference in the Franco-British Convention of 1937 t o the jurisdictional privileges enjoyed by the Cnited States, it must be considered a s a precautionary measure on the part of France against the possibility of the refusal of the Cnited States t o relinquish such privileges. I n a n y case, the rights of the United States vis-à-vis Morocco in matters of jurisdiction must be determined by their own treaty relations, and could not derive from any admission made by France on Morocco's behalf to a third party.

text: Judges HACICWORTH, B A D A W I , LEVI CARNEIRO and Sir Benegal

text: KAU, availing themselves of the right conferred on them by

text: Article 57 of the Statute, append t o the Judgment the common statement of their dissenting opinion.

text: (Initialled) A. D. McN

text: (Initialled) E. H.

title: Rights of Nationals of the United States of America in Morocco (France v. United States of America)