Thispaper deals with: Firstly the general problems of nationalization or expropriation of alien property, secondly the specific problems of legal impact of concession contracts.
In recent practice, the mode of compensation for nationalized or expropr...
Thispaper deals with: Firstly the general problems of nationalization or expropriation of alien property, secondly the specific problems of legal impact of concession contracts.
In recent practice, the mode of compensation for nationalized or expropriated property of aliens have not followed a uniform model, but have been carried throngh a variety of schemes governed by no common guiding principle. In this time, the most obvious lesson is that the simplicity of the traditional rule which requires the adequate, prompt and effect compensation cannot be captured in a modern formula. The compensation scheme will be guided by factors shaped by the magnitude of propriation, financial situation and other specific circumstances within the host country.
Concession contract is devided into two types; one refers to domestic law as its proper law and the other refers to international law or the general principles of law, or contains arbitration clauses for the settlement of disputes, which is called the internationalized contract.
In the so called intenationalized economic concessions, the most controversial point is whether a mere breach of the contract directly and immediately gives rise to the international responsibility of State.
In order to subject the international contract to quasi-intesnational legal order, it might be more appropriate to entrust the decision to an international body so that the impartial settlement of interests between praties may be assured.
The secrecy of the proceedinps in investment dispute settlement ought to be reconsidered in the light of the need to make the rules governing such disputes more apparent and to promote their acceptance by the international community, especially the developing countries.