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Die Nationalisierung Niederländischer Unternehmungen in Indonesien im Lichte Des Völkerrechts
Published online by Cambridge University Press: 21 May 2009
Extract
Professor Verdross discusses the content of the Indonesian legislation on the Nationalization of the Netherlands Enterprises, and draws attention to pronouncements by the Indonesian Government during the parliamentary debates on the Nationalization Act from which it is evident that the payment of compensation is being used as a means of coercion in the political dispute between the Netherlands and Indonesia over New Guinea.
Since the payment of the compensation—the amount of which is in itself entirely uncertain—is being deferred to an indeterminate date in the future, while the Nationalization Act has retroactive effect from 3rd December, 1957, the measures discussed are, in the writer's opinion, to be regarded as a confiscation of alien property.
Over alien property on its territory a State has only a limited power—limited, that is, by international law. This principle, enunciated as long ago as the 18th century by Vattel, has been elaborated in the subsequent development of international law to mean that confiscation of property of aliens is under all circumstances contrary to international law (except as a penalty for grave crimes), whereas expropriations in the public interest against adequate compensation are permissible.
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References
* In diesem Zusammenhang kann auf folgende Aeuszerungen in der Regierungsantwort vom 21. November 1958 bei der Behandlung des Nationalisierungsgesetzes im Parlament verwiesen werden:
a. As regards the manner of payment of the compensation, the Government is at the present moment of the opinion that the need does not yet exist to discuss this at an early date.
The Government is also fully convinced that the question of the manner of payment of the compensation, taking into account the present circumstances of the State, is an extremely important question.
The Government therefore considers it necessary to discuss this matter, as already emphasized, at the appropriate time together with the Parliament.
b. We have now arrived at the question by the honorable member Sardjan, who observed that this nationalization will in any case be a burden on our budget, which already shows a large enough deficit. The Government cannot agree with the honorable questioner that the nationalization will be a burden on the State budget, because the payment of the compensation will be effected in such a way that it will not be a burden on the finances and the State expenditure and will not mean a “flight of capital”.
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