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In modern international law, permanent sovereignty over natural resources has come to entail duties as well as rights. This study analyses the evolution of permanent sovereignty from a political claim to a principle of international law, and examines its significance for a number of controversial issues such as peoples' rights, nationalization and environmental conservation. Although political discussion has long focused on the rights arising from permanent sovereignty, Dr Schrijver argues that this has been at the expense of the consideration of the corollary obligations it also entails. His book thus identifies new directions sovereignty over natural resources has taken in an increasingly interdependent world and demonstrates its relevance to current debate on foreign-investment regulation, the environment and sustainable development. Sovereignty over natural resources CAMBRIDGE STUDIES IN INTERNATIONAL AND COMPARATIVE LAW This series (established in 1946 by Professors Gutteridge, Hersch Lauterpacht and McNair) is a forum for studies of high quality in the fields of public and private international law and comparative law. Although these are distinct legal sub-disciplines, developments since 1946 confirm their interrelationship. Comparative law is increasingly used as a tool in the making of law at national, regional and international levels. Private international law is increasingly affected by international conventions, and the issues faced by classical conflicts rules are increasingly dealt with by substantive harmonisation of law under international auspices. Mixed international arbitrations, especially those involving state economic activity, raise questions of public and private international law. In many fields (such as the protection of human rights and democratic standards, investment guarantees, and international criminal law) international and national systems interact. National constitutional arrangements relating to 'foreign affairs' and to the implementation of international norms are a focus of attention. Professor Sir Robert Jennings edited the series from 1981. Following his retirement as General Editor, an editorial board has been created and Cambridge University Press has recommitted itself to the series, affirming its broad scope. The Board welcomes works of a theoretical or interdisciplinary character, and those focusing on new approaches to international or comparative law or conflicts of law. Studies of particular institutions or problems are equally welcome, as are translations of the best work published in other languages. General Editors James Crawford Whewell Professor of International law, University of Cambridge David Johnston Regius Professor of Civil Law, University of Cambridge Editorial Board Professor Hilary Charlesworth University of Adelaide Mr John Collier Trinity Hall, Cambridge Professor Lori Damrosch Columbia University Law School Professor John Dugard Director, Research Centre for International Law, University of Cambridge Professor Mary-Ann Glendon Harvard Law School Professor Christopher Greenwood London School of Economics Professor Hein Kotz Max-Planck-Institut, Hamburg Dr Vaughan Lowe Corpus Christi College, Cambridge Professor D. M. McRae University of Ottawa Professor Onuma Yasuaki University of Tokyo Advisory Committee Professor D. W. Bowett QC Judge Rosalyn Higgins QC Professor Sir Robert Jennings QC Professor J. A. Jolowicz QC Professor Eli Lauterpacht QC Professor Kurt Iipstein Judge Stephen Schwebel Sovereignty over natural resources Balancing rights and duties Nico Schrijver Institute of Social Studies, The Hague vim CAMBRIDGE UNIVERSITY PRESS CAMBRIDGE UNIVERSITY PRESS Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, Sao Paulo Cambridge University Press The Edinburgh Building, Cambridge CB2 8RU, UK Published in the United States of America by Cambridge University Press, New York www.cambridge.org Information on this title: www.cambridge.org/9780521562690 © Cambridge University Press 1997 This publication is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 1997 This digitally printed version 2008 A catalogue record for this publication is available from the British Library Library of Congress Cataloguing in Publication data Schrijver, Nico, 1954Sovereignty over natural resources / Nico Schrijver. p. cm. Includes bibliographical references. ISBN 0 521 56269 4 (hardback) 1. Natural resources - Law and legislation. 2. Sovereignty. 3. Government ownership - Law and legislation. I. Title. K3478.S37 1997 341.7'62-dc20 96-33595 CIP ISBN 978-0-521-56269-0 hardback ISBN 978-0-521-04744-9 paperback To the memory of Cornells Schrijver, B. V. A. Roling and Subrata Roy Chowdhury The fact that the Rio Grande lacks sufficient water to permit its use by the inhabitants of both countries does not entitle Mexico to impose restrictions on the United States which would hamper the development of the latterfs territory or deprive its inhabitants of an advantage with which nature had endowed it and which is situated entirely within its territory. To admit such a principle would be completely contrary to the principle that the United States exercises full sovereignty over its national territory. US Attorney-General Harmon, in 21 Opinions of the Attorney-General of the United States (1895), p. 283 [T]he emphasis on national sovereignty is partly a transitional problem which has to be experienced but which will pass by. But it is also undoubtedly the expression of the new state's weakness, of its need for protection against external influences. In the Charter of the UN, this protective law is expressed in the principles of 'sovereign equality* and of self-determination. B. V. A. Roling, International law in an Expanded World (Djambatan: Amsterdam, 1960), p. 78 It would . . . be a mistake to consider the idea of permanent sovereignty over resources as anachronistic nationalistic rhetoric. It should be viewed as a fresh manifestation of present aspirations for self-rule and greater equality. O. Schachter, Sharing the World's Resources (Columbia University Press: New York, 1977), p. 126 The sovereignty, territorial integrity and independence of States within the established international system, and the principle of self-determination for peoples, both of great value and importance, must not be permitted to work against each other in the period ahead. Respect for democratic principles at all levels of social existence is crucial: in communities, within States and within the community of States. Our constant duty should be to maintain the integrity of each while finding a balanced design for all. UN Secretary-General Boutros-Ghali, An Agenda for Peace (United Nations, New York, 1992), p. 10 Contents List of boxes,figuresand tables Preface Acknowledgments xiv xvi xviii List of abbreviations List of main symbols used in UN documents Glossary Table of cases 1 xx xxiv xxvi xxviii Introduction Objectives of the study Genesis of permanent sovereignty as a principle of international law The international context The subjects: a widening and a contracting circle The objects to which permanent sovereignty applies Goals and objectives for the exercise of permanent sovereignty Scope and orientation of the study 1 1 3 4 7 11 20 25 PART I The birth and development of the principle: the UN General Assembly as midwife Introductory remarks to Part I 33 2 The formative years (1945-1962) 36 The early years (1945-1951): balancing national and global interests 37 ix CONTENTS The 1952 'nationalization' resolution: the demand for economic independence 41 Linking human rights, self-determination and natural resources (1952-1955) 49 From self-determination of peoples to sovereignty of States: the UN Commission on Permanent Sovereignty over Natural Resources (1958-1961) 57 Bridging the gap: the near

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