The Mining Concession - Essay Example

(a) Before the war, State A had lent money to Cee Company. State B now claims that it is entitled to half of that money.

State B is entitled to some amount of that money since at the time the contract was signed it was one country. However, the amount of money it will receive is dependent on the location of Cee Company and whether its operations lie in countries A, B, or somewhere between the two.  The motives behind the loan must also be assessed clearly in order to determine the objectives of the transaction.  Just like the seceding state is obliged to pay its share of the national debt after the secession, it is also entitled to a fair share of the loan given to the Cee Company. However, the manner in which such transactions are to be handled often depends on the laws of country A since it was the mother country, and the constitution was laid out by both of the two conflicting sides. Controversies will arise and this is why a compromise between the two sides has to be struck in order to settle the dispute amicably.

1. b) Before the war, State A had granted a mining concession to Dee Company for a 50-year period on land that is now within the territory of State B. That concession still has 20 years to run. State B claims that it is no longer valid.

The mining concession awarded by state A to Dee Company for a 50-year period on land that is now within the territory of State B is not valid after the secession. Although the concession still has 20 years to run, State B’s claims that it is no longer valid are justified. If Dee Company is interested to continue mining on the territory of state B, then it has to sign a different concession with them. The two states then have to strike an agreement on how to compensate Dee Company for the remaining part of the concession since, by virtue of stopping the mining, they will have violated the terms of the contract. The mining company should also understand that the circumstance under which the contract was violated was beyond anybody’s control and that its renewal is the only way forward.

(c) Before the war, State X had concluded a treaty with State A in which State X granted State A “most favored nation” trade status. State B now claims that it is entitled to the same treatment.

State B is not entitled to the “most favored nation” status awarded by state X to A since it may not be able to fulfill certain conditions of the status.  Additionally, it is a new country and should start looking for trade partners and not rely on the contracts made by state A because they are now two different countries.