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

The meaning of Resolution 1803 (XVII) in this regard is also clear. The Chilean draft resol ution was opposed by the Soviet Union on the ground that inclusion of the requiremer:t of compensation restricted the sovereignty of the people,(62) which explaíns why none c.f the Soviet drafts contained provisíons on índemnification. As previously noted, all of thesH Soviet proposals were rejected. Another amendment proposed by the Soviet Union proví· ding that "the question of compensation to the owners shall in such cases be decided in accordance with the national law of the country taking these measures... "(63) was also rejected, with Chile voting for the rejection.(64) Defending his own draft, the Delegare of Chile stated: The draft resolution also mentioned appropriate compensation in the event of such measures, whether the owner was a national of the country or an alíen... The ideas expressed... had been debated at length in meetings which had led to the concl usion that a compromise was not possible if the idea of compensation were abandoned.(65) At an earlier point, he had mentioned that in the caseof extreme measures, such as nationalization, a sufficíent amount of compensation should be paid to ensure respect for the rights of investors.(66) The Chilean constitutional amendment which authorized the copper nationalizations established a mechanism tor the determination of compensation and valuation of the affected enterprise's assets. Also, numerous declarations of the Chílean Government do not deny, as a matter of principie, tha! compensation is called for.(67) However; internatio– nal law is concerned not only with the obligation to compensate but also with the require– ments and conditions of payment. The latter aspect has provoked considerable controversy in the case of the Chilean nationalizations. The Government of the United States in this matter has reaffirmedits traditional positíon that under generally accepted principies of international law a state taking the property of an alien must provide for the payment of "prompt, adequate, and effective compensation."(68) On the other hand, the Government of Chile has insisted that the question of compensation is governed entirely by municipal law standards and that internationallaw imposes no other requirement than the oblígation not to discríminate against aliens.(69) These conflicting positions tor years have divíded the internatíonal legal community and lay at the heart of the discussion of Resolution 1803 (XVII). Although in the opinio'n of several authors, the resolution endorses the position ofthe United States,(70) this is not the conclu~ion which the history of its drafting suggests; neither is the position of the Chilean (62)UN Doc., supra nole 56, al 7·8. (63)UN Doc. A C.2 L.21. (64)Also Afghanislan submitted an amendmenl proposing Ihal the compensation be paid "when and where appropriale" (UN Doc. A C.2 L. 655), explaning Ihal olherwise Ihe economy 01 the country and Ihat 01 Ihe world as a whole would be endangered. UN Doc. A C.2 SR. 834 al 11. (65)17 UN Gaor, al 231, UN Doc. A C.2 SR.834 (66)UN Doc. A AC.97 SR.22 al 8. (67)Response of /he Delegation of Chile, supra nole 39, al 1-2. See also, Slalemenl by the. Minister 01 Mining before Ihe Senale. Session N.o 25. Jan 19, 1971 in El Mercurio, Jan. 23, 1971, al 8. (68)Statemenl by Charles A. Meyer, supra nole 8, al 498. However, lhe stalemenl ofthe Secrelary 01 S!ale on Oc!. 13, 1971 referred to "reasonable provision lor paymentol jusI compensation". 65 Depl. Slale Bull. 478 (1971). For an examination 01 Ihe governing principies 01 inlernalionallaw as inlerpreled in suppórt ofthis position, see, An Analysis of/he Expr~priatíons qf/he proper/ies ofSociedadMinera El Teniente by Chile in Ligh/ oflnternational La'" Principies in Valuation, supra note 29, al 55-86. (69)Response ofthe Delegarion ofChile, supra nole 39, al 2. See also slaternenl bythe Chilean Mimsler 01 Foreign Affairs, supra note 5, al 13. Both stalements indicale tha! this is the meaning 01 Resolution 1803. (70)Ges5. supra nole 3, at 427-28. Schwebel, supra note 3, at 465-66. 263