Chile: the balanced view : a recopilation of articles about the Allende years and after

SOME INTERNATIONAL LAW PROBLEMS POSEO BY THE NATIONALIZATION OF THE COPPER INOUSTRY BY CHILE(*) By FRANCISCO ORREGO VICUÑA(**) The co.mplex pro.cess surro.und'ing the natio.nalizatio.n o.f the co.pper industry in Chile has raised numerous impo.rtant questio.ns and engendered co.nfljcting claims abo.ut prin– cipies and standards required by internatio.nal law in pro.perty takings affectíng the inte– rests and rights o.f aliens. The purpo.se o.f this article is to. examine, in an o.bjective fashio.n, So.me o.f these questio.ns and claims with particUlar reference to. well-established prece-' dents and co.ntempo.rary do.ctrines in this pro.blematic area o.f internatio.nal law. Such an attempt at ebjectivity is no.t easy since the Chilean natienalizatio.n invelves necessarily disparate no.tio.ns abeut the ríght to. preperty and its pro.tection under municipal and ínternatienal law. The requírements óf internatio.nal law co.ncern~ng preperty takíngs were taken inte acco.unt o.nly to. a mino.r extent during the pro.cess of co.nstitutio.nal amendment(1) which resulted in the natienalizatien ef the cepper índustry. Hewever, during the parliamentary' debates, it was censtantly underlined that UN General Assembly Resolutio.n 1803 (XVII) o.f December 14, 1962(2) provided a fundamental and legitimate basis fo.rthe natio.nalizatien under internatio.nal law. Altho.ugh it is no.t appro.priate to. reexamine the histery ef the drafting o.f that. resolution, it is certainly impo.rtant to. clarify the basic co.ncept which inspired the reso.lutio.n, particularly since Chile was one o.f its mo.st active pro.mo.ters at the United Nations.(3) (')Published in Ihe American Journal of International taw. Vol. 67, N.o 4. October 1973. Reprinted wilh oermission lrom Ihe American Sociely 01 International Law. (")proiessorol I~ternatil?!!a! Law aqh~l"lniversi~ ofChíle, Santiago. . . / (1 )The Presldentlal mallOn 01 Dec. :21, 1970 whlch propased the constltutlonal amendment conceming natural resources and their natíonalization. states thal this measure is "a righl recognized by the Charler 01 !he United Nations" and "even bythe Supreme Court ofthe United States". Chilean Senate Bull. N.o 25.073: Annex lo the Report 01 the Commitlee on Constilutional Affairs 01 the Senate. Jan. 17. 1971, at15 (hereinafter cited as Senate Bull). The proposed constilutional amendment ís reproduced in 10 ILM 430-35 (1971). According to what was later stated bythe representatives 01 the Executive in the Senate Commitlee, the references in the Presidential motion were lo General Assembly Resolution 1803 (XVII). 17 UN Gaor Supp. 17, at 42, UN Doc. A 5217 (1962), and lo the Sabbatino case. Senate Bull. at 34,93. Resolution 1803 (XVII was mentioned in almost every sessíon 01 the Commitlee and 01 the Senate. and ~as reproduced in lull in theofficial recoros in two occasions. Although professors and experts in mining and conslltullOnal law were consulted regularly by the Senate Commitlee, this was nOl the case with internatlonal ~awyer$. The point 01 view 01 internatíonal law was introduced by university prolessors, in articles pUblished by the newspapers El Mercurio. on Feb. 5 18 and Apríl 20. 1971. (2)ln addition to the relerences to the resolution made during the díscussion 01 the constilutional amendmenl in CongresS. il has been invoked in many other instruments and declarations. See. for exampte, transilory Article 1701 the Constitution, which relers lo lhe "exercise oflhe'sovereign and inalienable ríght 01 the Slate lreely to dísposeof ils natural wealth and resources.. ' 10 ILM 1068 (1971); and Decree N.O 92 01 Sepl. 28. 1971 on deduction 01 excess prolits. 10 ILM 1238 (1971). See also Address by the Undersecrelary 01 Foreign 'Affaírsol Chile in the Second regular meeting 01 the General Assembly 01 the Organízation 01 American States in OAS Docs. AG. C-136 72. (1972). (3)Resolulíon 1803 (XVII) originated in the recommendalions 01 the Commission on Permanent Sovereígnty over Natural Aesources. created by Resolulion 1314 (XIII) 01 Dec. 12. 1958. These recommendatíons were introduced in the Draft Resolution submitted bythe Delegation 01 Chile. see Gess, Permanent Sovereignty Over NaturalResources. 131nl. and Comp. L. a. 398 (1964). See also. SChweítzer, Debate en el Senado Sobre Soberanía y Recursos Naturales. El Mercurio. Jan. 26, 1971. at 3. See also, SChwebel. Story ofthe V. N.'s Declaratíon on Permanent S'JVereignty over Natural Resources, 49 A.BAJ. 463 (1963). 255