What Level of Host State Interference Amounts to a Taking under Contemporary International Law?
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Charlcs N. Brower and Mark D. Davis, The Iran-United States Claims Tribunal after Seven Years: A Retrospective View from the Inside, 43 Arbitration Journal, No. 4, 1988, 16, at 18. 2 led. 3 F. Halliday, Iran: Dictatorship and Development, 2nd edition, Penguin, Hannondsworth, U.K., 1979, p. 154.
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4 Etela 'at, 7 January 1979, p. 4. 5 Etela 'at, 31 January 1979, p. 3. 1 Banks were nationalized on 7 June 1979, insurance industries on 25 June 1979, heavy industries in July 1979 and oil industries in January 1980. 7 Iranian Official Gazette, No. 10012, t3 July 1979. " Iranian Official Gazette, No. 10031, 16 July 1979.
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'' R.W. Bentham, The Acquisition of Natural Resources Interests by the State in the United Kingdom and International LAw, J.E.N.R.L., Supplement, December 1987, p. 49, at p. 58.
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10 Errol P. Mender, The Canadian National Energy Program: An Example of Assertion of Economic Souvereignty or Creeping Expropriation in International Law, 14 Vaiidcrbilti. Trans. L. 475, 1981, pp. 477-488. 11 Id. 12 RudolfDolzer, Indirect Expropriation of Alien Property, ICSID Peview-FILJ, Vol. 1, No. 1, Spring 1986, p. 41, at p. 52. m Ibid., pp. 52-53. �4 "The prospect of indirect taking provides much more of a deterrent to private foreign investment in underdeveloped countries than the prospect of a direct taking via confiscation or expropriation.": R. Gardner, International Measureqj6r the Promotion and Protection of Foreign Investment, Proc. A.S.Y.I.L., 1959, p. 255, at p. 262.
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�5 For a detailed discussion, see C.F. Amerasinghe, The Quantum of Compensation for Nationalised Property, in 3 Lillich Valuation Series 91, 1975, at p. 121. 1. 16 W.D. Verwcy and N.J. Schrijver, The Taking of Forcign Property Under International Law: A New, Legal Perspective? 15 Netherlands Yearbook of International Law 3, at p. 62; see also G.C. Christie, What Co�hfHfM � a Taking of Property Under International Law? 38 B.Y.13.I.L. 309, 1962; M. Whiteman, 8 Diqest ofintertiatiotial Law, pp. lOOfr1020, 1967; Bentham, supra, footnote 9; 7he Measures Taken by the Indonesian Government Against Netherlands Enterprises, 5 Neth. Int'l L. Rev. 227, 1958; Burns H. Weston, "Constructive Taking" under International Law — A Modest Foray into the Problem of "Creepiqq Expropriation", 16 Va. J.1.L. 103, 1975; R. Higgins, The Taking af Prvpetty by the State: Recent Developments in International Law, 176 Recueil des Cours, Vol. Ill, 1983, p. 259.
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" See Louis B. Sohn and R.R. Baxter, Responsibility of States for Injuries to the Economic Interests of Aliens, 55 A]m 545, 1961, at 553. 11 Ibid., p. 559. I" See, for example, Germany v. Poland (Chorznw Factory), 1927 P.C.1j., Series A, No. 7; United Kingdom v. Belgium (Oscar Chinn), 1934 P.C.I J., Series A, No. 63, p. 65; Norway v. Clnited States (Norwegian �hi;)f)H'nfn). ) 1 RIAA 307 (1922); Belgium v. Spain (Barcelona Traction), 1970 ICJ 3. 211 21ILM 740, 1986. 21 Ibid., p. 758.
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22LenaGoldfields,Ltd.v.Unionof SovietSorialistRepublics, Case Nos. 1 and 258, 5 Ann. Dig. Public Int'l L. Cases 3, 1930, and 36 Cornell L.Q. 31, 1950. 23 5 Ann. Dig. Public Int'l L. Cases P. 4. 24 Harza Engineering Co. v. Iran, Award 19-98-2, 1 Iran-U.S.C.T.I. 499, at 504. 25 See Payne v. Iran, Award 245-335-2, 12 Iran-U.S.C.T.R. 3, at 9, and the cases cited there; Foremost Teheran, Inc. v. Iran, Award 220-37/231-1, 10 Iran-U.S.C.T.R. 229, at 243-244.
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26 UN General Assembly Resolution 1803 (xvii), 1962, in I. Brownlie, Basic Documents in International Law, 3rd edition, Oxford University Press, Oxford, U.K., 1983, p. 232. 27 Christie, supra, footnote 16, pp. 336-337. =" Liselotte Hauer v. Land Rheinland I?falz (Hauer), Case 44/79, Judgment of 13 December 1979, European Communities Court ofJustice Report, Part m, 1979, p. 3727, at p. 3746.
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29 Sporrong and Lnnnroth, Judgment of 23 September 1982, Publications of the European Court of Human Rights: Series A, Vol. 52, p. 4. 30 Supra, footnote 28. 31 Dolzer, supra, footnote 12, p. 48. 32 Sporronq and Lonnroth, supra, footnote 29, paras. 18 and 25, pp. 11-12. 33 Ibid., p. 22. 34 Ibid., para. 63, p. 24.
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35 Ibid., para. 60, pp. 23-24. 3h Ibid., para. 61, p. 24. 3� Ibid., para. 63, pp. 24-25. 3� Ibid., para. 64, p. 25. 3') Ibid., para. 70, p. 27.
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11 Ibid., p. 20. 41 Supra, footnote 28. 42 Ibid., p. 3746. 43 Ibid., p. 3747. ^� Ibid., p. 3746.
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45 Christie, supra, footnote 16, p. 337.
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11 Michael Akehurst, A Modern lntroduction to International Law, George Alien and Unwin, London, 1984, p. 94. '� Ibid., pp. 94-95. 4' G. White, Nationalisation of Foreign Property, Stevens, London, 1961, p. 168. 49 I. Brownlie, Principles of Public International Law, 3rd edition, Clarendon Press, Oxford, U.K., 1979, p. 532. 5" Sitpra, footnote 17, p. 555. 5' Supra, footnote 19.
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sz Ibid., p. 106. s3 Ibid., p. 274. 54 Supra, footnote 19. 55 Ibid., p. 44. 16 Ibid., p. 5. 5� Christie, supra, footnote 16, p. 311. sx Ghorzow Factory, supra, footnote 19, p. 44.
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59Supra, footnote 19. 60 Ibid., p. 87. m Ibid., p. 82. fiz Ibid., p. 85.
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63 Ibid., p. 99. �^ See, for example, United States v. Panama, (De Sabla), Panamanian Claims Commission., 28 A)n. (1934), p. 602; United States v. Hungarian Government (/eno Hartmann), United States Foreign Claims Settlement Commission, Decision No. Hung. 717 (1958), IOth Semiannual Reports to the Congress for the Period ending 30 June 1959, p. 45; United States v. Hungary, Decision No. Hung. 1925 (1958), ibid., p. 61; Kuqle v. Polish State, Upper Silesian Arbitral Tribunal, 1932, [1931-32] Ann. Dig. 69. See generally, Christie, supra, footnote 16, pp. 312-322. 65 Supra, footnote 19. 66 Ibid., p. 325.
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b� See, for example, Higgins, supra, footnote 16, pp. 323 and 340. 68 Norwegian Shipowners, supra, footnote 19, p. 325. 69 Id. 70 Christie, supra, footnote 16, p. 311.
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71 Iranian Official Gazette, No. 9950. 72 Iranian Official Gazette, No. 10012. 71 Ibid., Article 3. 74 Iranian Official Gazette, No. 10031. �5 Ibid., Article 1.C.1 (c). �� Iranian Official Gazette, No. 10049.
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" See Sedco Inc. v. Niocllran, Interlocutory Award 55-129-3, 9 Iran-U.S.C.T.R. 248, pp. 277-278. �x Ibid., pp. 278-279. 79 Ibid., p. 279. 80 Supra, footnote 25. 81 Ibid., pp. 7-8.
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"2 Ibid., p. 9. 83 Ibid., p. 8. ri; Ibid., p. 9. ri-� Ibid., p. 11. "fi Ibid., pp. 9 and 11. 87 Motorola v. Iran, Award 373-481-3, 19 Iran-U.S.C.T.R. 73. "" Ibid., para. 59, p. 87.
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11 Ibid., para. 46, p. 82. YO Ibid., para. 51, p. 84. 11 Ibid., para. 59, p. 85. '2 Starrett Housing Corporation v. Iran, Intcrlocutory Award 32-24-1, Iran-U.S.C.T.R. 122, p. 153.
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y=� Ibid., pp. 153-154. ''4 Ibid., p. 155. 9s Ibid., p. 154. 9�' See, for example, Tippetts v. T/)AM-�FF�, Award 141-7-2, 6 Iran-U.S.C.T.R. 219, pp. 225-226; Whelps Dodge v. Iran, Award 217-99-2, 10 Iran-U.S.C.T.R. 121, para. 21, pp. 129-130; Sedco, supra, footnote 77, pp. 274-277. 97 Supra, footnote 24. v" Ibid., p. 501. 99 Id. 100 Id.
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10' Ibid., p. 502. mz Ibid., p. 504. '03 Id. 104 Supra, footnote 92. ���� Ibid., p. 154.
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11"Tippetts,supra, footnote 96, p. 225. 107 Dames F� Moore v. lra/!, Award 97-54-3, 4 Iraii-U.S.C.T.P,. 212. 108 Ibid., p. 222. 10" Ibid., p. 233. 110 Id.
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IIIComputer SciencesCorp.v.Iran, Award 221-65-1, 10 Iran-U.S.C.T.R. 269. "2 Ibid., p. 303. 113 William L. Pereira Assoriates, Iran v. Iran, Award 116-1-3, 5 Iran-U.S.C.T.R. 198, p. 227. "4 Oil Field of Texas, Inc. v. Niocllran, Award 258-43-I, 12 Iran-U.S.C.T.R. 308, at pp. 318-319. 115 Id.
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116 Supra, footnote 111. 117 Ibid., pp. 298-302. 118 Ibid., p. 302. "y Sea-Land Services, Inc. v. Iran, Award 135-53-1, 6 Iran-U.S.C.T.R. 149. 1211 Ibid., p. 167. 'z' Schering Curporatinn v. Iran, Award 122-38-3, 5 Iran-U.S.C.T.R. 361. 122 Ibid., p. 367, no. 1. 123 Ibid., p. 367. '2^ Hood Corporation v. Iran, Award 142-100-3, 7 Iran-U.S.C.T.R. 36.
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125 Ibid., p. 40. 126 Id. 127 Ibid., p. 45. 128 Ibid., pp. 46-47.
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129 Ibid., p. 45. 1311 Articles of Agreement of the International Monetary Fund, 27 December 1945, T.I.A.S. No. 2322, 2 U.N.T.S. 185, Article VII, Section 3(b).
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131 Supra, footnote 24. 112 Ibid., pp. 500-501. �33 Ibid., pp. 504-505. 134 Ibid., p. 504. �35 American Bell International, Inc. v. Iran, Award 255-48-3, 12 Iran-U.S. C.T.R. 170. 136 Ibid., p. 214.
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137 Id. 138 Supra, footnote 113. �;� Ibid., p. 226. 1411 Charles N. Brower, Current Development in the Law of Expropriation and Compensation: A Preliminary Survey ofAwards of the Iran-United States Claims Tribunal, The International Lawyer, Vol. 21, No. 3, 1987, p. 639, at p. 644. 141 Supra, footnote 7.
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Supra, footnote 77. '^3 Ibid., p. 270. 144 Ibid., p. 273. 145 Id. ''�� Ibid., p. 275. 147 But, as repeatedly stated by the Tribunal, "it is recognized in international law that measures taken by a State can interfere with property rights to such an extent that these rights are rendered so useless that they must be deemed to have been expropriated, even though the State does not purport to have expropriated them and the legal title to the property fornially remains with the original owner." (emphasis added): Starrett Housing, supra, footnote 92, p. 159; Sedco, supra, footnote 77, p. 265, No. 17. 14M Sedco, supra, footnote 77, p. 275.
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t^9RaygoWagnerEquipmentCo.v.StarLineIranCo.. Award 20-17-3, 1 Iran-U.S.C.T.R. 411, p. 413; Rexnord, Inc. v. Iran, Award 21-132-3, 2 Iran-U.S.C.T.R. 6, pp. 9-10; Cal Mine Foods v. Iran, Award 133-340-3, 6 Iran- U.S.C.T.R. 52, p. 59; Kimberly Clark Corp. v. Bank Markazi Iran, Award 46-57-2, 2 Iran-U.S.C.T.R. 334, p. 338. 1511 Sedco, supra, footnote 77, p. 277. 151 Ibid., pp. 277-278. tsz Ibid., pp. 278-279. 15' Ibid., p. 275. 154 Ibid., p. 278. 155 Ibid., pp. 277 and 279. 156 Supra, footnote 96. razz "The Official Gazette published the appointment of 11 August 1979 as that of the managers of TAt�ts- AFFA." Ibid., p. 224.
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151 Ibid., p. 225. 159 Ibid., pp. 225-226. Supra, footnote 96, p. 121. 161 Ibid., p. 129. tfiz Ibid., pp. 128-129.
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163 Ibid., p. 129. 164 Ibid., p. 130. 165 Id. 166 Id. 167 Ibid., pp. 130-131. 'fix Starrett Housing, supra, footnote 92, p. 154.
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169 Ibid., p. 156. z" Ibid., p. 154. 171 Id. 172 Id. See also Sedco, supra, footnote 77, p. 277; I'ayne v. Iran, supra, footnote 25, pp. 9-10; Phelps Dodge, supra, footnote 96, pp. 129-130; Motorola, supra, footnote 87, p. 85. ��3 See Norwegian Shipowners, supra, footnote 19, p. 307; Tippetts, supra, footnote 97, pp. 225-226.
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174 Brower, supra, footnote 140, p. 649; Phelps Dodge, supra, footnote 96, pp. 129-130. 175 See M. Ago, Special Reporter, On the Responsibility of States, Third Report, Y.B.I.L.C., 1971, Vol. II, pp. 238 et seq. 17(1 See International Law Commission, Draft Articles on State Responsibility, Article 5, Y.B.I.L.C., 1980, Vol. u, Part 2, p. 29. 177 Ibid., Article 7, p. 30.
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178 Ibid., Article 8, p. 30. ��`' Ago, supra, footnote 175, Section 191, p. 264.
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'"0 M. Ago, Special Reporter, On the Responsibility of States, Fourth Report, Y.B.LL.C., 1972, Vol. II, pp. 72, et seq. 181 Ibid., paras. 10-44, pp. 75-88. 182 Ibid., para. 44, p. 88. 183 See the Harvard Draft Convention, Article 15, as cited ibid., para. 49, p. 90. See also American Law Institute, Restatement of the Law (1965), Section 169, Y.B.LL.C., 1971, Vol. u, Part 1, p. 149, Doc. A/CN.4/217/ Add.2. 184 Ago, supra, footnote 180, para. 45, p. 88. 1"5 Ibid., para. 60, p. 95.
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'"6 International Technical Production Corp. v. Iran, Award 196-302-3, 9 Iran-U.S.C.T.R. 206. 1H7 Ibid., p. 234. 188 Ibid., pp. 238-239. 119 Ibid., p. 239. 190 Computer Sciences, supra, footnote 111, p. 303. Oil Field oJTexas, Inc. v. Mac/Iran, Interlocutory Award 10-43-FT, 1 Iran-U.S.C.T.R. 317, p. 348.
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In Ibid., pp. 348, 356 and 357. 193 Ibid., p. 349. 194 Ibid., p. 362. 1'5 Hf-xi-H)M Leasing, Inc. v. Iran, Award 259-36-1, 12 Iran-U.S.C.T.R. 335.
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1% Ibid., p. 349. 197 Brower, supra, footnote 140, p. 655. m" ILC, supra, footnote 176, p. 30. 199 See the debates in Y.B.LL.C., 1975, Vol. i, pp. 26 et seq. z'"' See Responsibility of States for Injuries to Aliens, Y.B.I.L.C., 1965, Part IV, p. 548. 2111 This case-law is traced in a detailed manner in Ago, supra, footnote 180, pp. 109 et seq.
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zuz See also Y.B.LL.C., 1980, Vol. it, Comment No. 30; Whiteman, supra, footnote 16, pp. 835-836. z«3 Sola Tiles, Inc. v. Iran, Award 298-317-1, 14 Iran-U.S.C.T.R. 223. zo4 Ibid., p. 233. 205 Pereira Associates, supra, footnote 113, p. 227; Computer Sciences, supra, footnote 111, p. 36. 200 Schering, supra, footnote 121. 207 Ibid., p. 364.
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20H Ibid., p. 370. 209 Id. 210 Hostages case, Ic) Reports, 1980, para. 73, p. 34. 2" See, for example, the UN Security Council's recognition of Israel's liability for "appropriate reparation to Argentina for the kidnapping of Adolph Eichmann by a volunteer group" for which Israel was held responsible; 36 I�k, pp. 58-59; Belgium v. Spain (the de Borchgrave case) 1938 P.C.I.)., 1937, Series No. 83, pp. 28-32 and 55. zi2 Talc, supra, footnote 176, p. 31. United States v. Venezuela, 9 RIAA 125, p. 133.
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ztaFrancev.Mexico, 5 IklAA 325, p. 352. 215 Sea-Latid, supra, footnotc 119. 216 Ibid., p. 151.
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217 Brower, supra, footnote 140, p. 653. 218 Sea-Land, supra, footnote 119, p. 166. 219 Starrett Housing, supra, footnote 92. 2211 Ibid., p. 157. 221 See Meager Iran, Award 324-10199-3, 17 Iran-U.S.C.T.R. 92, p. 100; Short v. Iran, Award 312-11135-3, 16 Iran-U.S.C.T.R. 76, p. 79. zzz Hostages case, supra, footnote 210, para. 73, p. 34.
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zz3 See International Technical Production, supra, footnote 186, p. 241; Hood, supra, footnote 124, p. 43. zz^ l3rower, supra, footnote 140, p. 656. 225 Supra, footnote 16.
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2=fi Ibid., p. 323. 227 Ibid., p. 324. 2," Nonvegian Shipowners, stipri, footnote 19. 229 Ibid., p. 316. 231, Ibid., p. 327.
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z3i Ibid., p. 328. 232 Ibid., p. 329. 233 Tippetts, supra, footnote 96, p. 225. 234 International 7i'('�H<m! Production, supra, footnote 186, pp. 24()-241. z;5 Sedco, supra, footnote 77, pp. 278-279. z3F Starrett Housing, supra, footnote 92, p. 154. z3� American Bell Int'l, supra, footnote 135, pp. 213-215; Dames & Moore, supra, footnote 107, p. 223. 23" International Technical Production, supra, footnote 186. z3'' 5cm, supra, footnote 77.
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2111InternationalTechnicalProduction,supra, footnote 186, pp. 240—241. 241 Sedro, supra, footnote 77, p. 278. 242 lid. z^� Ibid., pp. 278-279. z4° See Starrett Housing, supra, footnote 92; Payne v. Iran, supra, footnote 25, para. 25, p. 11; Sola Tiles, supra, footnote 203, para. 35, p. 232 and para. 66, p. 242; Whelps Dodge, supra, footnote 96, para. 22, p. 130 and para. 31, p. 133. =4s This appointment was made pursuant to a decree of the Revolutionary Council adopted on 14 July 1979 under the rubric of the Legal Bill of June 1979, supra, footnote 7; Starrett Housing, supra, footnote 92, pp. 144-147.
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246StarrettHousing, ibid., p. 156. 247 Ibid., pp. 155-156. 248 Avnoro International Finance Corporation v. NIOClIran, Award 310-56-3, 15 Iran-U.S.C.T.R. 189. 24. Ibid., pp. 225-226.
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1-111 Ibid.,p. 227. 251 Ibid., para. 181, p. 244. 252 Id.
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z5'Tippetts,supra, footnote 96, pp. 225-226. 254 Id.; Starrett Housing, supra, footnote 92, p. 155.
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zss M. Sornarajah, T7ie Pursuit of Nationalised Property, Martinus Nijhoff Yublications, Dordrecht, 1986, p. 202; Karl M. Meessen, Domestic Law Concept in International Arbitration, 4 Lillich Valuation Series 157, p. 158. zse .SM-L<m�, supra, footnote No. 119, p. 168; Ina Corporation v. Iran, Award 184-161-1, 8 Iran-U.S.C.T.R. 373, p. 379.
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What Level of Host State Interference Amounts to a Taking under Contemporary International Law?
In: The Journal of World Investment & TradeSearch for other papers by Hassan SEDIGH in
Current site
Google Scholar
PubMed
| All Time | Past Year | Past 30 Days | |
|---|---|---|---|
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