New-York tribune., 1907-08-11
rBE REAL DRAGO DOCTRINE.

4 fimev-and we suspect to most people sur
MISREPRESENTATION of the mulch discussed
Drago Doctrine appears in the current tJnly)
| number of The American Journal of Interna-
tional Law in the form of detalled essay
translated from the Spanish Of Mr.. Luis NJ
Drago himself lie recalls briefly the occasion
of the promuIgation of that doctrine. In De
cember 1902 three European powers were TAX
ing military steps against Venezuela for the set
tlement of claims of various sorts, incIuolhS
those for payment of interest on outStslhuihs
government bonds. Argentina. IN common WIN
ALI South America, deeply moved at the
spectacle and its government Oh December ~
1902 sent to its minister at Washington note
discussing the principles pertaining TO the for
chile collection of public debts arising from
government loans. Then n. Drago discusses
at great length. but with unfailing interest ana
lucidity. the chief of those principles
The cist of the matter lies in his phrase pub
lie debts and his definition Of the same lt
has widely been assumed that his doctrine was
intended 10 forbid the forcible collection OF any
claims whatever at any rate that pubic
debts were assumed TO embrace all obilgatlohS
of state In the article before us it is made
quite clear that such was not the case. Inc
Argentine note of December %, 19O2'-we
quote Mr. Drago's own exact wsrds-"dellb-
"erately excluded claims for whose adequate APP
| "nreciation the laws of the respective countries
.,rouId hare to be consulted and confined lfs
.atfenti0n solely TO The fOTcibte collection OF me
Interest On bonds Of pu6lic debt" Such bonds.
of course constitute an entirely distinct ana
separate class OF obligations. for the confusion
of which with any other there is no excuse
The issuing of them is one of the prime and ex-
elusive functions Of national sovereignty. Just
as is the issuing offnoney, and they are void OF
all the characteristics of private contracts
xyhv dehfS should not he
collected forciby are clearly set forth by Mr..
Drago 4 nation does not suspend payments on
its plblic debt except for the gravest of causes,
and its so doing is always attended with pro
found disturbances of the finances and economic
resources of the country. Intervention is 10 COM
peI the doing OF something which the country is
unable to do. and is, therefore. likely to involve
either some subyersion OF the debtor states
sovereignty or alien occupation and control Tor
an indefinite time, as the examples OF Egypt and
Turkey suggest. 1t was against the menace Of
such subversion or indefinite occupation OF
South American states by European powers
that the Drago Doctrine was directed and moth
ing else 1t had no reference to claims for in
demnitv for damages alleged to have been sus-
tanned, or for losses under specific private con-
tracts or for any OF the things for which. we
| think the majority of international pecuniary
claims are made.
As for these latter the ordinary contracts De
| tween the state acting as legal person and
some specified individual the Drago Doctrine
| has no reference 10 them. Nevertheless MI.
Drago in this article indicates his view of the
proper disposition OF them. They Should. he
| saws go TO the tribunals or courts Of claims IN
| case of failure on the part Of the government
| TO execute them while in case of a denial OF
Justice the common and accepted principles OF
| international law obtain for them Such claims
| are however of minor Importance. for the rea-
| son that they be disposed of by the pay
ment of them. and thus the action, just or I'M
| lust which the creditor nation might take for
| their collection can be averted. The more seri-
Gus debts TO which the Drago Doctrine refers
cannot so readily be disposed of, since they are,
as we have said, accompanied with national IN
ability to Iiquidate tbem--indeed, ii is only on
the occurrence of such inability that such
claims are made and pressed. We commend
| Mr. Drago's luminous exposition of his doctrine
TO the careful reading of all who are desirous of
understanding accurately and comprehensively
the issues involved in the relations Of public
debts 10 international policy, and we again ex-
press grateful appreciation of the service which
that always admirable periodical "The Amer
lean Journal Of International Law performs
in making such an exposition accessible 10 the
public.