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public document, and verified as such by the possessor, if a private one) to the foreign office of the demanding Government which shall be given opportunity to examine the original through its duly accredited diplomatic representatives. If notice of the desired discovery be given too late to be answered io days before the commission herein provided for shall sit for hearings, then the answer desired thereto shall be filed with or documents produced before the commission as speedily as possible.
Art. X. The case of the United States and supporting evidence shall be presented to the Government of Peru through its duly accredited representative at Washington as soon as possible, and, at the latest, within four months from the date when this agreement becomes effective. The Government of Peru shall submit in like manner, through its representative at Washington, its full answer to such case within five months from the date of the presentation of the case of the United States. The Gov. ernment of the United States shall present in like manner its reply to the answer of the Peruvian Government, which reply shall contain only matters in reply to the case of the Government of Peru, within three months from the date of the filing of the Peruvian answer, and Peru may, in like manner, within four months, present a reply to the reply of the Government of the United States. The allegations and documents of each party shall be presented at least in quintuplicate.
The case shall then be ready for consideration by the commission, which shall hear arguments by the agents of the respective Governments, and, in its discretion, may, after convening, call for further documents, evidence, or correspondence from either Government; and such further documents, evidence, or correspondence shall if possible be furnished within 60 days from the date of the call. If not so furnished within the time specified, a decision in the case may be given without the use of said documents, evidence, or correspondence.
ART. XI. The decision of the commission shall be rendered within four months from the date of its first meeting, unless the commission, for reasons which shall be communicated to both Governments, shall find it imperatively necessary to extend the time. The decision, when made, shall be forthwith communicated to the Governments at Washington and Lima. It shall be accepted as final and binding upon the two Governments.
ART. XII. The amount granted by the award, if there should be.any, shall be made payable in gold coin of the United States, at the Department of State, Washington, within one year after the rendition of the decision by the commission, with interest at 6 per cent per annum, beginning to run one month after the rendition of the decision.
Art. XIII. Each of the parties hereto shall pay its own expenses and one-half of the common expenses of the arbitration. Each Government shall pay the salary and expenses of the commissioner appointed by it, but the salary and expenses of the third commissioner and of the secretary shall be included in the common expenses of the arbitration.
In faith whereof they have drawn up the present protocol, in duplicate, in like terms in English and Spanish, signing and sealing it with their private seals, in Lima, this 21st day of May, 1921.
WILLIAM E. GONZALES (SEAL.]
(SEAL.] Mr. BYRNS. I presume this item of rent applies to quarters to be occupied in London?
Mr. Carr. Yes; when our agent goes to London, of course, he must have quarters in which to maintain his office for the short time he will be there. There will be no rent here.
The CHAIRMAN. Mr. Carr, I think the policy of the committee would be antagonistic to the language "to be immediately available and to continue available until expended," because it never gets off the books if we put it in that way.
Mr. Carr. Mr. Chairman, may I explain what we meant by that? To be immediately available means that we have a time limit fixed within which proceedings must begin. The protocol contains a time limit within which we can act, and the Secretary has already been obliged to go ahead and get some one to prepare this case.
The CHAIRMAN. This appropriation will be immediately available upon approval by the President anyway without this language,
because being a deficiency appropriation it becomes available at once on approval.
Mr. CARR. We understood this bill might contain some limitation that would make this language "immediately available" necessary.
The CHAIRMAN. I would not think so.
Mr. Carr. If that is true, we would not care anything about that. So far as continuing available until expended is concerned, the reason for that is that this arbitration is likely to run over the limit of the fiscal year.
The CHAIRMAN. Suppose we made it available until December 31, 1922, how would that meet your view? That fixes a limit and if you have to come back, of course you could do so.
Mr. CARR. I fear that would not do, because under the terms of the protocol the earliest date upon which the decision of the arbitrators is due is March 21, 1923. There might be delay beyond that date. Even after the decision there would have to be arranged the compensation of judges, court expenses, and perhaps other matters. Since the estimate is very conservative, and practically the entire expense would be at least obligated during the current year, would it not be less trouble to Congress to make the entire appropriation now available until expended?
ARBITRATION, UNITED STATES AND NORWAY.
The CHAIRMAN. The next item is for the expenses of the arbitration between the United States and Norway of certain claims of Norwegian subjects aganist the United States arising out of requisitions made by the United States Shipping Board Emergency Fleet Corporation. Tell us about that.
Mr. CARR. That, Mr. Chairman, is a question of the arbitration of claims which the Norwegian Government has against us.
The Norwegian claims grow out of a requisition order issued by the United States Shipping Board Emergency Fleet Corporation during the World War. This order was communicated to the various shipyards by telegrams dated August 3, 1917, which requisitioned
all power-driven cargo-carrying and passenger vessels above 2,500 tons dead weight capacity under construction in your yards, and materials, machinery, equipment and outfit thereto pertaining. Under the terms of this order a number of vessels in various stages of construction belonging to Norwegian subjects were taken over by the Shipping Board, together with materials, and equipment destined for the construction of other vessels. Negotiations thereupon ensued between the Shipping Board and the Norwegian interests with respect to the “just compensation” due the Norwegian owners for the vessels and materials so requisitioned, under the terms of the Emergency Shipping Fund provision of the urgent deficiency appropriation act of June 15, 1917.
On June 3, 1919, an agreement was reached between the Shipping Board and the Norwegian owners representing 27 of the Norwegian new buildings, the so-called "stray group," whereby a payment of $34,500,000 was made to the Norwegian owners in full settlement of their claims. The Shipping Board was, however, unable to come to terms of agreement with the representatives of the so-called "Christiania group," comprising the owners of 15 other Norwegian
steel cargo vessels which had been contracted for with American yards. The Shipping Board was willing to pay for the physical property requisitioned, i. e., any construction actually done and any materials actually assembled or contracted for, and to reimburse the former owner for any progress payments made to the shipbuilder, not represented by work or materials. But the Board was not willing to reimburse the Norwegians for the sums which they claim to have paid for the so-called "ships' position,” i. e., the value of their contracts to have a ship built.
The Norwegians also disputed the effective date of requisition and maintained that they were entitled to settlement on the basis of assignments of contracts made subsequent to August 3, 1917.
The net result of this divergence of viewpoint was that while the requisition claims. commission of the Shipping Board was willing to recommend settlements amounting to about $2,500,000 the Norwegian claimants demanded $14,157,977.58, an amount which was subsequently increased when the claim was presented diplomatically by the addition of indirect damages, raising the aggregate claim to $15,600,000.
The CHAIRMAN. Have we entered into any contract with the Norwegian Government that we will pay them?
Mr. CARR. We have entered into an agreement with the Norwegian Government, which has been ratified by the Senate and proclaimed by the President, providing for the arbitration of these claims, and this is merely for the expense of arbitration of a matter already approved by the Senate.
The CHAIRMAN. Have you a copy of the agreement?
Mr. CARR. It was printed in the record of July 27, but I will furnish the committee or put in my hearing a copy of the record, official print.
AGREEMENT BETWEEN THE UNITED STATES AND NORWAY FOR THE SUBMISSION TO
ARBITRATION OF CERTAIN CLAIMS OF NORWEGIAN SUBJECTS.
The United States of America and His Majesty the King of Norway, desiring to settle amicably certain claims of Norwegian subjects against the United States arising, according to contentions of the Government of Norway, out of certain requisitions by the United States Shipping Board Emergency Fleet Corporation;
Considering that these claims have been presented to the United States Shipping Board Emergency Fleet Corporation and that the said corporation and the claimants have failed to reach an agreement for the settlement thereof;
Considering, therefore, that the claims should be submitted to arbitration conformably to the Convention of the 18th of October, 1907, for the pacific settlement of international disputes and the Arbitration Convention concluded by the two Governments April 4, 1908, and renewed by agreements dated June 16, 1913, and March 30, 1918, respectively;
Have appointed as their plenipotentiaries, for the purpose of concluding the following Special Agreement;
The President of the United States of America: Charles E. Hughes, Secretary of State of the United States; and
His Majesty the King of Norway: Mr. Helmer H. Bryn, His Envoy Extraordinary and Minister Plenipotentiary at Washington;
Who, after having communicated to each other their respective full powers, found to be in good and due form, have agreed on the following articles:
The Arbitral Tribunal shall be constituted in accordance with Article 87 (Chapter IV) and Article 59 (Chapter III) of the said ('onvention of October 18, 1907, except as hereinafter provided, to wit:
One arbitrator shall be appointed by the President of the United States, one hy His Majesty the King of Norway, and the third, who shall preside over the Tribiinal, shall be selected by mutual agreement between the two Governments. If the two Governments shall not agree within one month from the date of the exchange of ratifications of the present Agreement in naming such third arbitrator, then he shall be named by the President of the Swiss ('onfederation, if he is willing.
The tribunal shall examine and decide the afore aid claims in accordance with the principles of law and equity and determine what sum if any shall be paid in settlement of each claim.
The tribunal shall also examine any claim of Page Brothers, American citizens, against any Norwegian subject in whose behalf a claim is presented under the present Agreement, arising out of a transaction on which such claim is based, and shall determine what portion of any sum that may be awarded to such claimant shall be paid to such American citizens in accordance with the principles of law and equity.
As soon as possible, and within five months from the date of the exchange of ratifica tions of the present Agreement, each Party, shall present to the agent of the other Party, two printed copies of its case (and additional copies that may be agreed upon) together with the documentary evidence upon which it relies. It shall be sufficient for this purpose if such copies and documents are delivered at the Norwegian Legation at Washington or at the American Legation at Christiania, as the case may be, for transmission.
Within twenty days thereafter, each Party shall deliver two printed copies of its case and accompanying documentary evidence to each member of the Arbitral Tribunal, and such delivery may be made by depositing these copies within the stated period with the International Bureau at The Hague for transmission to the Arbitrators.
After the delivery on both sides of such printed case, either Party may present, within three months after the expiration of the period above fixed for the delivery of the case to the agent of the other Party, a printed counter-case (and additional copies that may be agreed upon) with documentary ev in answer to the case and documentary evidence of the other Party, and within fifteen days thereafter shall, as above provided, deliver in duplicate such counter-case and accompanying evidence to each of the Arbitrators.
As soon as possible and within one month after the expiration of the period above fixed for the delivery to the agents of the counter-case, each Party shall deliver in duplicate to each of the Arbitrators and to the agent of the other Party a printed argument (and additional copies that may be agreed upon) showing the points relied upon in the case and counter-case, and referring to the documentary evidence upon which it is based. Delivery in each case may be made in the manner provided for the delivery of the case and counter-case to the Arbitrators and to the agents.
The time fixed by this Agreement for the delivery of the case, counter-case, or argument, and for the meeting of the Tribunal, may be extended by mutual consent of the Parties.
The Tribunal shall meet at The Hague within one month after the expiration of the period fixed for the delivery of the printed argument as provided for in Article II.
The agents and counsel of each Party may present in support of its case oral arguments to the Tribunal, and additional written arguments, copies of which shall be delivered by each Party in duplicate to the Arbitrators and to the agents and counsel of the other Party.
The Tribunal may demand oral explanations from the agents of the two Parties as well as from experts and witnesses whose appearance before the Tribunal it may consider useful.
The decision of the Tribunal shall be made within two months from the close of the arguments on both sides, unless on the request of the Tribunal the Parties shall agrer to extend the period. The decision shall be in writing.
The decision of the majority of the members of the Tribunal shall be the decision of the Tribunal.
The language in which the proceedings shall be conducted shall be English. The decision shall be accepted as final and binding upon the two Governments.
Any amount granted by the award rendered shall bear interest at the rate of six per centum per annum from the date of the renditior of the decision until the date of payment.
ARTICLE V. Each Government shall pay the expenses of the presentation and conduct of its case before the Tribunal; all other expenses which by their nature are a charge on both Governments, including the honorarium for each arbitrator, shall be borne by the two Governments in equal moieties.
This Special Agreement shall be ratified in accordance with the constitutional forms of the contracting parties and shall take effect immediately upon the exchange of ratifications, which shall take place as soon as possible at Washington.
IN WITNESS WHEREOF, the respective plenipotentiaries have signed this Special Agreement and have hereunto affixed their seals. Done in duplicate at Washington this 30th day of June, 1921. [SEAL.
CHARLES E. HUGHES (SEAL)
HELMER H. BRYN The CHAIRMAN. We will be glad to have that. You think we are bound now to enter upon the arbitration ?
Mr. CARR. Oh, yes; we are bound now to enter upon the arbitration. The President has negotiated this special agreement and the Senate has ratified the agreement, and therefore we are legally bound to continue with the arbitration. It may be added that the United States and Norway are parties to the Hague Convention of 1907 and also have a general arbitration convention concluded April 4, 1908, and renewed June 16, 1913, and March 13, 1918.
Mr. KELLEY. My recollection about this is that the ships were requisitioned while on the ways of shipbuilding companies in this country and the price that this Government was willing to pay was the amount that the Norwegian owners had contracted for with American shipbuilders; but instead of that, they wanted the market value of those ships at the time they were taken by the Government. In other words, we wanted to settle with them on the same basis that we settled with our own citizens and they would not accept that.
Mr. CARR. I do not know the details of the arbitration, quite naturally, and the solicitor of the department was not able to come up with me this afternoon because of doing something else for the secretary.
The CHAIRMAN. I notice that you have language in here which I think if employed would give you the right to exceed the amount of subsistence expenses provided by law: "Including personal services in the District of Columbia and elsewhere, and actual and necessary traveling and subsistence expenses, notwithstanding the provisions of any other act. "
Now, you might employ people in the District out of this appropriation which would not be authorized under the law, if this language goes in, and this would be an amendment to the law which I doubt the wisdom of.
Mr. CARR. Mr. Chairman, that was put in intentionally, and I will explain why. This is a treaty obligation. It requires a special kind of service. It is outside of the department service and we thought it ought to be treated differently and outside of the limitations placed upon departmental appropriations.