Pacta Sum Servanda l The Harvester Company entered into a contract with State R to harvest timber on government land in State R for a period of 20 years. The contract provided that if there were any disputes, the matter was to be resolved by arbitration, with the International Chamber of Commerce appointing the arbitrator and the arbitrator applying the rules of International Law, the general principles of law, and equity. Two years later, State R told the Harvester Company to cease operations and leave State R (as the timber industry in State R is being nationalised). State R made no effort to compensate the Harvester Company for State R's breach of the contract. The Harvester Company has now initiated an arbitration proceeding. State R claims that contracts between a State and a private person can be broken at any time by the State because to do otherwise would be to deny the State its sovereignty. Discuss. Principle of Negative Servitude 5 A river runs through State A and State B. State A is comparatively economically rurderdeveloped but has laws that its chemical industries have to process sewage before discharging any wastes into the river. Both States A and B have recognised the jurisdiction of the ICJ to resolve disputes between them regarding breaches of International Law. State B has brought a legal action against State Abefore the ICJ claiming that the sewage from State A may adversely affect its aqua culture and reduce the lifespan of salmon found in the river. How would the ICJ rule in this dispute? Discuss. Changes in Territorial Sovereignty 6 State A and State B share a common border. State A has ratified the UN Convention on the Prevention of Punishment of the Crime of Genocide; State B has not. State A has entered into a treaty establishing commercial relations with State X and extending Most Favoured Nation status to State X; State B has not. State A has a treaty with State Y that established the international border between State Y and State A's Western Province. Which of these treaties will continue to have effect if: a) State A cedes its Western Province to State B? b) The Western Province obtains its independence? c) State A and State B merge and become new State C