711.5812/33

The Secretary of State to the Swedish Minister (Wallenberg)

Sir: I have the honor to refer to your note of February 9, 1923, relating to the proposal made by the Government of Sweden that a, new Arbitration Convention be concluded by the United States and Sweden, and transmitting upon instructions of your Government a draft which is the French text of the Arbitration Convention of 1908, between the United States and Sweden, modified in Articles I and II in respect to the tribunal to which questions of difference which may arise within the scope of the Convention shall be referred and in Article IV in regard to the length of the period of notification of termination of the Convention.

With reference to the suggestion of your Government that the Permanent Court of International Justice, established at The Hague under the Protocol of December 16, 1920, instead of the Permanent Court of Arbitration established by the Convention concluded at The Hague on July 29, 1899, be indicated in Article I of the Convention now proposed as the tribunal to which the United States and Sweden will agree to resort for the judicial settlement of differences, I would state that this Government, not having given adhesion to the Protocol under which the Permanent Court of International Justice was established, would not consider it to be desirable for it to enter into a stipulation in an Arbitration Convention with another power to refer matters of difference which may arise between [Page 699] them to that Court. For this reason the United States is not in a position to accept at this time Articles I and II of the draft convention transmitted with your note of February 9, 1923, in which is incorporated the suggestion of the Government of Sweden that the Permanent Court of International Justice be agreed upon as the tribunal of reference.

I am happy to assure you, however, that if the Government of Sweden on giving further consideration to the matter should be disposed to conclude at this time an Arbitration Convention with the United States providing, as did the Convention of 1908, that the Permanent Court of Arbitration established at The Hague shall be the tribunal to which resort would be had by the United States and Sweden, for the arbitration of differences, the United States is ready to conclude a Convention similar to the Convention concluded on May 2, 1908, with the following understanding.

On February 24 last the President proposed to the Senate that it consent under certain stated conditions to the adhesion by the United States to the Protocol of December 16, 1920, under which the Permanent Court of International Justice has been created at The Hague. As the Senate does not convene in its regular session until December next, action upon this proposal will necessarily be delayed. In the event that the Senate gives its assent to the proposal, this Government would be prepared to accept the proposal of the Government of Sweden that matters of dispute between them be referred to the Permanent Court of International Justice and would wish to be able to rely upon a previous assurance that the Government of Sweden would not be adverse to considering a modification of the Convention of Arbitration, which it is now proposed to conclude, or the making of a separate agreement, under which the disputes mentioned in the Convention could be referred to the Permanent Court of International Justice.

Upon the assurance from yourself that your Government is disposed to conclude an Arbitration Convention similar to the Convention of 1908 with such an understanding, I shall at once arrange to have the draft of a convention prepared for your consideration and send you in advance a copy of my proposed note; and I shall be glad in that event to receive a copy of your Government’s proposed reply with respect to the understanding.

The suggestion of the Government of Sweden that the period of duration of the Convention after a notice of termination shall have been given by either Government shall be six months as provided in Article IV of the draft accompanying your note is acceptable to this Government.

Accept [etc.]

Charles E. Hughes