States waters, the activities of the owner of the two ships, and the character of the cargo of the Pacific. The relations and activities of the shipper, owner, and consignee of the cargo also may be regarded important.

Considering the grounds of the claim alleged by the Government of Sweden and the Swedish claimant company and the provisions of articles I and III of the special agreement of December 17, 1930, the Agent for the United States presents this statement in behalf of the Government of the United States. References are made in this statement to treaties, provisions of statutes of the United States, proclamations of the President, Executive orders, and other pronouncements by the President. These public acts have been printed in official publications of the Government. It may have been unnecessary therefore to print them as part of the Case of the United States in this arbitration. However, since these acts will be used in written and oral argument, they are included for convenience as appendices to this statement.

There is submitted also, in the form of exhibits, evidence to which reference is made in this statement. The evidence consists chiefly of correspondence relating to the Kronprins Gustaf Adolf and the Pacific and of other pertinent correspondence. Certified copies of the evidence included in exhibits will be produced in due course.1

I

SPECIAL AGREEMENT OF DECEMBER 17, 1930, BETWEEN THE UNITED STATES AND SWEDEN

The special agreement by which the claim of the Government of Sweden on behalf of Rederiaktiebolaget Nordstjernan has been submitted to arbitration is included herein as appendix 1 (p. 61).

1References to pages throughout denote pages of this volume, unless another publication is specifically mentioned.

II

TREATIES OF APRIL 3, 1783, AND JULY 4, 1827, BETWEEN THE UNITED STATES AND SWEDEN

According to article I of the special agreement of December 17, 1930, the question first to be decided is whether the Government of the United States detained the Swedish motorship Kronprins Gustaf Adolf between June 23, 1917, and July 12, 1918, and the Swedish motorship Pacific between July 1, 1917, and July 19, 1918, in contravention of the Swedish-American treaties of April 3, 1783, and July 4, 1827. This comprehensive question is conveniently separated into two parts: (1) whether the action which the Government of the United States shall be proved in the course of this arbitration to have taken with respect to the two motorships, constituted detention of them between the dates mentioned; and, if so, (2) whether the detention was in contravention of the treaties. For obvious reasons it is necessary to a proper presentation and consideration of the subject that the treaties of April 3, 1783, and July 4, 1827, be set out in full. Therefore, the full French texts and English translations of those treaties are included as appendices to this statement, the treaty of April 3, 1783, being appendix 2 and the treaty of July 4, 1827, being appendix 3 (pp. 66, 91).

III

CONTROL OF EXPORTS FROM THE UNITED STATES

An act of Congress entitled "An Act to punish acts of interference with the foreign relations, the neutrality, and the foreign commerce of the United States, to punish espionage and better to enforce the criminal laws of the United States, and for other purposes" was approved by

the President June 15, 1917 (40 Statutes at Large, pt. 1, p. 217).

Title VII of the statute mentioned provided that whenever during the war the President should find that public safety so required, and should make proclamation thereof, it should be unlawful to export from or ship from, or take out of the United States to any country named in such proclamation, any article or articles mentioned therein except at such time and under such exceptions and limitations as the President should prescribe. It is noteworthy that this title authorized collectors of customs, subject to review by the Secretary of Commerce, to refuse clearance to vessels which were about to carry articles out of the United States in violation of the title. Title VII was quoted in the President's proclamation of July 9, 1917, hereinafter mentioned (appendix 6, p. 111).

On June 22, 1917, the President issued an Executive order by which he vested in the Secretary of Commerce the executive administration of all instructions and proclamations issued by the President under title VII of the act of June 15, 1917, and authorized and directed the Secretary of Commerce to take such measures as were necessary to administer and execute the instructions and proclamations and to grant or refuse export licenses in accordance with instructions. An Exports Council was established by the Executive order to formulate for the approval of the President policies and recommendations necessary to carry out the purposes of the act of June 15, 1917. The Executive order of June 22, 1917, is included as appendix 4 (p. 108). It is quoted at page 361 of the report of the War Trade Board, 1920; also at page 4 of Official Bulletin, June 26, 1917.

There was also published in Official Bulletin, June 26, 1917, a statement by the President in regard to the policy of exports control. This statement is included as appendix 5 (p. 109). It will be observed from the President's statement that prohibition of exports was not in contemplation.

On July 9, 1917, the President proclaimed that whereas public safety required that succor should be prevented from reaching the enemy, designated articles, including fuel oils, should not be carried out or exported from the United States to certain countries named, including Sweden, except under such regulations and subject to such limitations and exceptions as the President should prescribe. This proclamation is published in 40 Statutes at Large (pt. 2, p. 1683) and is included as appendix 6 (p. 111). The proclamation included a quotation of title VII of the act of June 15, 1917; a recitation that public safety required that succor should be prevented from reaching the enemy; an inhibition against carrying out or exporting without license fuel oil, explosives, fertilizers, and designated food products from the United States to foreign countries, including Sweden, and a declaration that the orders and regulations prescribed from time to time would be administered under authority of the Secretary of Commerce by whom licenses in conformity with orders and regulations would issue.

Immediately after issuing the proclamation of July 9, 1917, the President published a statement showing the purposes of the proclamation. This statement is included as appendix 7 (p. 114). It may be found in Official Bulletin, July 9, 1917 (p. 3). It will be observed from the President's statement that in controlling exports, the Government had chiefly in view the amelioration of the food conditions which had arisen or were likely to arise in the United States before new crops were harvested.

On August 21, 1917, the President, by virtue of authority of title VII of the act of June 15, 1917, issued an Executive order establishing an Exports Administrative Board and vesting in that Board the administration of instructions and proclamations issued by the President under title VII of the act of June 15. The President established also by that order an Exports Council to act in an advisory capacity on such matters arising under

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the act of June 15, 1917, as might be referred to the Council by the President or the Administrative Board. This order superseded the Executive order of June 22, 1917 (pp. 6, 108), as of August 27, 1917. The Executive order of August 21, is included as appendix 8 (p. 115). It is published in the report of the War Trade Board, 1920 (p. 363).

On August 27, 1917, an additional proclamation was issued enlarging the list of articles subjected to control. According to this proclamation, the regulations, orders, limitations, and exceptions prescribed were to be administered by and under the authority of the Exports Administrative Board. The proclamation was published in 40 Statutes at Large (pt. 2, p. 1691). It is not printed herein. In this proclamation materials or ingredients used in manufacturing explosives were included among articles which could not be exported from or shipped from or taken out of the United States to various countries, including Sweden. Nitrate of soda, nitrate of potash, and saltpetre were included among articles which could not be exported from, shipped from or taken out of the United States to various countries, not including Sweden. The proclamation of August 27 was accompanied with a statement of the purposes of the proclamation. This statement by the President is included as appendix 9 (p. 116). It was published in Official Bulletin, August 28, 1917 (p. 1). The President in this statement declared the purpose of the proclamation of August 27, 1917, to be exports control and not prohibition of exports.

Reference is made later (p. 9) to Executive order of October 12, 1917, in relation to control of imports into the United States and enemy trade.

Title VI of the act of June 15, 1917, bears on the procedure to be followed in seizing and detaining ships carrying merchandise unlawfully exported from the United States. That title is included as appendix 10 (p. 117). It is published in 40 Statutes at Large (pt. 1, pp. 217, 223).